Figures

Hong Kong Figures - Retail Q1 2025

April 25, 2025 10 Minute Read

Retail leasing momentum slowed in Q1 2025 as retailers remained on the sidelines and continued to observe the pace of the market recovery. An increase in tourist arrivals failed to positively impact consumption, with total retail sales falling by 7.8% y-o-y in January and February combined. However, February retail sales improved compared to the previous month, their sixth consecutive m-o-m gain.
F&B groups accounted for just 44,700 sq. ft. of newly leased space, their lowest share since Q1 2022. However, with other retailers slow to commit to new leases, the sector remained the largest source of demand. The education sector was second, contributing 16% of leasing volume for the quarter.
Vacancy remained stable across all core districts, standing at 6.3% in Central, 5.3% in Causeway Bay, 14.3% in Tsim Sha Tsui, and 6.9% in Mong Kok. Overall vacancy remained at 7.8%.
Single-digit overall vacancy underpinned steady growth in high-street shop rents, which grew by 1.0% q-o-q, the same pace as in the previous two quarters.