Empty stores in core hubs at 42-month high

Melody Chen

Hong Kong's four major districts saw the vacancy rate of street shops rise to 11.7 percent in the third quarter, the highest in 42 months, said Midland IC&I, while calling for more government support ahead of next month's policy address.

It cited the weak local food and beverage business and intensified competition amid the arrival of mainland brands as the reason for the rise.

The number of dining establishments in the four major core areas was 2,001 in the third quarter of this year, down by 56 from the first quarter.

Non-Chinese restaurants saw the largest decline, dropping from 609 to 557, a decrease of 52. Chinese restaurants and beverage takeaway shops each saw a reduction of nine outlets.

Midland warns the vacancy would still hover between 11.5 percent and 12.5 percent in the first quarter of next year.

Midland urged the government to roll out more support in various aspects, as Chief Executive John Lee Ka-chiu will announce his new policy address next month.

There were a total of 874 vacant shop spaces across the four major core areas - Causeway Bay, Central, Tsim Sha Tsui, and Mong Kok - as of the third quarter of this year, an increase of 154 compared to six months ago.

Among them, Tsim Sha Tsui's latest vacancy rate reached 15.4 percent, an increase of 3 percentage points compared to six months ago, with 230 vacant shop spaces, while Central and Causeway Bay recorded 13.8 percent and 13.2 percent respectively.

Mong Kok had the lowest vacancy rate among the four areas at 8.9 percent, but the number of vacant shop spaces reached 309, an increase of 72 from the first quarter.

The residential districts, including Yuen Long and Sheung Shui, also saw an increase in the vacancy rates for shops, with the latest figures at 10.2 percent and 9.1 percent, respectively.

Meanwhile, Midland said that retailers are slowing their expansion due to the popularity of online shopping and falling consumption.

The number of shops in the clothing, footwear and leather goods sectors in the four core areas totaled 655, down by 28 from the first quarter of 2024, as of the third quarter.

However, the number of cosmetics and personal care shops in the four major districts grew by four from the first quarter to 117, as the affordable pricing of fast-moving consumer products continued to attract a steady customer base.