# Hong Kong prime street shop rents to grow by up to 10% in 2026

- **Source:** Real Estate Asia
- **Published:** 2026-08-11T00:47:05.000Z
- **Author:** Staff Reporter
- **Original:** https://realestateasia.com/commercial-retail/news/hong-kong-prime-street-shop-rents-grow-10-in-2026
- **Topics:** Commercial & Industrial, Government & Policy, Transactions & Deals

## Featured rationale

Recovering tourism and luxury spending signal improving demand for prime retail space, potentially enabling selective rental increases despite e-commerce growth and outbound spending leakage.

## AI summary

Knight Frank maintained its forecast for Hong Kong prime street shop rents to rise 5% to 10% in 2026 as leasing strengthened.

## Original article

The leasing market continued to gain momentum in Q2.

Hong Kong's retail market continued to strengthen in the first half of 2026, supported by a rebound in tourism, resilient luxury spending and improving leasing activity, with Knight Frank maintaining its forecast for prime street shop rents to rise by 5% to 10% this year.

According to Knight Frank, retail sales increased 7.9% year-on-year in May, while cumulative sales for the first five months of 2026 rose 10.6% to HK$171.5 billion. Luxury goods remained the strongest-performing segment, with sales of jewellery, watches, clocks and valuable gifts surging 25.8% year-on-year in May, following 20.5% growth in April. Knight Frank attributed the performance to the appreciation of the renminbi and a recovery in mainland Chinese visitor arrivals.

More domestically focused retail categories posted slower growth. Department store sales rose 9.2% year-on-year in May, while consumer durable goods increased 8.9%, although Knight Frank noted that growth in both segments has moderated.

Tourism continued to underpin the market, with mainland visitor arrivals reaching 26.71 million during the first half of 2026, up 13% year-on-year. Citing Hong Kong Tourism Board data, Knight Frank said per capita spending by mainland overnight visitors increased 3.8% to HK$5,305 in the first quarter, providing further support for luxury retail sales.

However, the consultancy said the tourism recovery continued to be offset by outbound spending. Between January and June 2026, Hong Kong residents made an estimated 61.8 million outbound trips, contributing to ongoing cross-border spending leakage and posing a challenge for retailers that rely more heavily on local consumer demand.

Knight Frank also highlighted the continued expansion of online retail, with e-commerce sales rising 32.3% year-on-year in May and accounting for 9.2% of total retail sales. The consultancy said growth has been driven by mainland Chinese e-commerce platforms expanding into physical retail. JD.com opened its first JD MALL outside mainland China in Wan Chai in June, with the 30,000 sq ft store reflecting the growing importance of experiential retail and potentially encouraging more online retailers to establish physical stores in Hong Kong.

Leasing activity in the prime street shop market also gathered pace. Knight Frank pointed to Hurlingham Polo leasing a 1,200 sq ft ground-floor shop at 112-114 Des Voeux Road Central for around HK$150,000 per month, a 36% increase on the previous rent. In Mong Kok, cosmetics retailer SaSa reportedly pre-leased a 2,430 sq ft ground-floor unit at Nathan Centre for about HK$450,000 per month, almost 30% higher than the rent agreed two years earlier.

According to Knight Frank, these transactions indicate improving momentum in the prime street shop sector, with landlords in selected locations beginning to secure rental increases. The consultancy therefore maintained its forecast for prime street shop rents to increase by between 5% and 10% in 2026.

Looking ahead, Knight Frank said it remains cautiously optimistic on the retail market. Mainland Chinese and international brands continue to favour prime shopping streets and major malls for new store openings as tourism recovers. However, the consultancy warned that structural challenges remain. While tenant sales in both prime and neighbourhood malls have returned to positive growth since 2025 and mid-tier malls have remained relatively stable, rental reversions continue to be negative. Knight Frank noted that the ongoing rise of e-commerce and persistent cross-border spending are expected to continue weighing on mass-market retail and the performance of mid-tier and neighbourhood shopping centres.

## Chinese translation

> Translation model: grok_cli

### 香港核心街道商铺租金2026年有望上涨最多10%

在旅游业回暖、奢侈品消费韧性以及租赁改善的支撑下，香港零售市场在2026年上半年持续走强

租赁市场在第二季度继续积聚动能。

在旅游业回暖、奢侈品消费韧性以及租赁活动改善的支撑下，香港零售市场在2026年上半年持续走强，莱坊维持其预测，即核心街道商铺租金今年将上涨5%至10%。

据莱坊称，5月零售销售同比增长7.9%，而2026年前五个月累计销售额上升10.6%，至1715亿港元。奢侈品仍是表现最强的板块，珠宝、钟表及贵重礼品销售在5月同比增长25.8%，此前4月已增长20.5%。莱坊将这一表现归因于人民币升值以及内地访港旅客人数复苏。

更偏本地需求的零售类别增长较慢。百货公司销售在5月同比增长9.2%，耐用消费品增长8.9%，不过莱坊指出这两个板块的增速均已放缓。

旅游业继续支撑市场，2026年上半年内地访港旅客达2671万人次，同比增长13%。莱坊援引香港旅游发展局数据称，内地过夜旅客人均消费在第一季度增加3.8%，至5305港元，为奢侈品零售销售提供进一步支撑。

不过，该顾问机构表示，旅游业复苏仍被出境消费所抵消。2026年1月至6月，香港居民估计进行了6180万次出境旅行，导致跨境消费外流持续存在，并对更依赖本地消费需求的零售商构成挑战。

莱坊还强调线上零售持续扩张，5月电商销售同比增长32.3%，占零售销售总额的9.2%。该顾问机构表示，增长受到内地电商平台向实体零售扩张的推动。京东于6月在湾仔开设其在中国内地以外的首家JD MALL，该3万平方英尺门店反映出体验式零售日益重要，并可能鼓励更多线上零售商在香港设立实体店。

核心街道商铺市场的租赁活动也加快。莱坊指出，Hurlingham Polo以每月约15万港元租下德辅道中112-114号一间1200平方英尺的地面商铺，租金较此前高出36%。在旺角，化妆品零售商莎莎据报以每月约45万港元预租弥敦中心一间2430平方英尺的地面单位，较两年前约定的租金高出近30%。

据莱坊称，这些交易表明核心街道商铺板块动能改善，部分地段的业主已开始落实租金上调。因此，该顾问机构维持其预测，即2026年核心街道商铺租金将上涨5%至10%。

展望未来，莱坊表示对零售市场仍保持审慎乐观。随着旅游业复苏，内地及国际品牌仍倾向在核心购物街和大型商场开设新店。不过，该顾问机构警告结构性挑战依然存在。虽然核心商场和社区商场的租户销售额自2025年以来已恢复正增长，中档商场也相对稳定，但租金续约调整仍为负值。莱坊指出，电商持续崛起以及跨境消费持续存在，预计将继续拖累大众市场零售以及中档和社区购物中心的表现。