# Hong Kong prime retail rents forecast to rise 5% to 10% in 2026

- **Source:** Real Estate Asia
- **Published:** 2026-10-06T23:00:00.000Z
- **Author:** Staff Reporter
- **Original:** https://realestateasia.com/commercial-retail/news/hong-kong-prime-retail-rents-forecast-rise-5-10-in-2026
- **Topics:** Commercial & Industrial, Transactions & Deals, Regional Markets

## Featured rationale

The outlook signals strengthening demand for prime retail space, potentially supporting rents and investor interest while distressed assets continue to undergo significant repricing.

## AI summary

Knight Frank forecasts Hong Kong prime street-shop rents to rise 5% to 10% in 2026, supported by recovering tourism and retailer demand.

## Original article

Prime street shops are expected to outperform the broader retail market.

Hong Kong's retail recovery remained firmly on track in July, with sales rising 4.5% year on year despite weather disruptions and increased outbound travel during the summer holidays, according to Knight Frank.

The latest increase followed 4.6% year-on-year growth in June, with Knight Frank saying the retail market demonstrated resilience despite typhoons, rainy weather and seasonal travel weighing on consumer activity.

Luxury spending continued to outperform, increasing 19.7% year on year in July, the property consultancy said. Looking ahead, Knight Frank expects the upcoming Golden Week holiday to support visitor arrivals and retail spending, providing a further boost to the sector.

Retail property transactions, however, presented a mixed picture. In Lan Kwai Fong, the former Insomnia bar at G/F Ho Lee Commercial Building, with a gross floor area of 3,228 sq ft, was sold by the mortgagee for HK$58.68 million, equivalent to HK$18,178 per sq ft. Knight Frank noted that the price was more than 65% below the property's original asking price, highlighting continued repricing, particularly among distressed retail assets.

At the same time, Knight Frank said continued interest from Chinese mainland investors indicates that demand for value-add and opportunistic retail acquisitions remains active.

Prime retail assets are attracting stronger investor interest. Knight Frank noted that BANDAI acquired the entire building at 8 Cochrane Street, Central, for about HK$95 million in 2025. The seven-storey property, formerly occupied by the century-old Chun Wo Tong, has since been converted into the flagship store of Hong Kong online toy retailer TOYC, which opened on 22 September 2026.

According to Knight Frank, the transaction and subsequent opening demonstrate the continued appeal of prime street-front retail assets, alongside growing demand for experiential and collectibles-focused retail concepts.

With tourism recovering and lifestyle and entertainment retailers maintaining demand, Knight Frank expects prime street shops to outperform the broader retail market, forecasting rental growth of 5% to 10% in 2026.

## Chinese translation

> Translation model: grok_cli

### 香港优质零售租金预计2026年将上涨5%至10%

香港零售复苏在7月依然稳步推进，尽管天气干扰及出境旅游增加，销售额仍同比上升4.5%

优质临街商铺预计将跑赢整体零售市场。

莱坊表示，香港零售复苏在7月依然稳步推进，尽管天气干扰及暑期假期出境旅游增加，销售额仍同比上升4.5%。

继6月同比增长4.6%之后，莱坊称，尽管台风、阴雨天气及季节性出行对消费活动构成压力，零售市场仍展现出韧性。

该房地产咨询机构表示，奢侈品消费继续跑赢大市，7月同比增幅达19.7%。展望未来，莱坊预计即将到来的黄金周假期将提振旅客到访及零售消费，为该行业提供进一步支撑。

不过，零售物业成交呈现分化。在兰桂坊，何利商业大厦地面层、建筑面积3228平方英尺的原Insomnia酒吧，由承按人售出，成交价为5868万港元，相当于每平方英尺18178港元。莱坊指出，该价格较物业原先叫价低逾65%，凸显持续重新定价，尤其是在困境零售资产中。

与此同时，莱坊表示，来自中国内地投资者的持续兴趣表明，对增值型及机会型零售收购的需求仍然活跃。

优质零售资产正吸引更强的投资者兴趣。莱坊指出，BANDAI于2025年以约9500万港元购入中环歌赋街8号整栋物业。这栋七层物业原由百年老店春和堂占用，其后改建为香港网上玩具零售商TOYC的旗舰店，并于2026年9月22日开业。

莱坊表示，该笔交易及随后的开业，显示出优质临街零售资产持续受到青睐，同时以体验及收藏品为导向的零售概念需求也在增长。

随着旅游业复苏，生活方式及娱乐零售商需求维持，莱坊预计优质临街商铺将跑赢整体零售市场，并预测2026年租金将增长5%至10%。