Hong Kong Figures - Retail Q4 2023

January 17, 2024 5 Minute Read

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  • Retail leasing momentum softened slightly this quarter as visitor arrivals remained at around 60-70% of pre-pandemic levels. Following growth of 14.4% y-o-y in Q3 2023, total retail sales in October and November grew by 10.7% y-o-y to HK$68 billion, the slowest y-o-y growth recorded so far this year.
  • F&B groups and pharmacies continued to expand on high streets to cater to the steadily increasing number of tourists. However, demand from jewellery and luxury goods retailers lost momentum as visitors remained unwilling to splash out on expensive goods.
  • Firm leasing demand ensured vacancy edged down by 2.3-ppt to 9.1%, the first time it has been in single-digit territory since Q1 2020. Vacancy in Tsim Sha Tsui and Mong Kok experienced decreases of 4.3-ppt and 4.0-ppt, respectively, bringing vacancy to 8.7% and 9.7%, respectively. Vacancy in Causeway Bay was flat at 5.3% but that in Central increased 1.3-ppt following an increase of 3.9-ppt in the preceding quarter, reaching 11.8%. 
  • High-street rents rose at a slower rate this quarter, increasing by 0.7% q-o-q, the smallest rate of growth since Q4 2022. This brought full-year growth to 6.3% y-o-y.