Hong Kong high street rents forecast to rise 3% this year
Improving tourism and limited prime-space availability signal firmer landlord conditions, potentially supporting rents while constraining transactions and directing tourist-focused retailers toward smaller units.
Colliers forecasts Hong Kong high street rents to rise around 3% in 2026, supported by visitor arrivals reaching 23 million and retail sales growing 10.6% year-on-year.
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Rents rose 2% in Q2.
Hong Kong's retail market strengthened in the second quarter of 2026 as rising tourism and improving retail sales continued to support leasing activity and rental growth, according to Colliers.
The consultancy reported retail sales increased 10.6% year-on-year, while visitor arrivals climbed 14.1% to 23 million during the first five months of the year. Tourist-focused retailers, particularly souvenir and gift operators, remained active, targeting smaller retail units of around 800 to 1,000 sq. ft.
Colliers said leasing demand remained selective, with limited availability of prime space in core retail districts restricting transaction activity. Despite these constraints, overall high street rents increased 2% year-on-year and were up 0.4% year-to-date.
Kathy Lee, Head of Research and Retail Consultancy at Colliers Hong Kong, said retail sales growth is expected to continue in the second half of 2026, although at a more moderate pace as some growth drivers normalise.
According to Colliers, continued growth in visitor arrivals and the limited supply of prime high street retail space are expected to support rental performance, with the consultancy forecasting overall high street rents will rise by around 3% in 2026.