Fitness as a strategic asset in Hong Kong’s property landscape

Before the pandemic, big-box gyms dominated. Since the pandemic, the sector has evolved and flourished.

Once regarded as high-risk tenants with aggressive sales tactics and unsustainable footprints, fitness centres in Hong Kong have undergone a remarkable transformation. 

Fitness centres are booming, and now serve as strategic assets – enhancing foot traffic, diversifying tenant mixes, and contributing to valuation uplift across retail and mixed-use developments. For property professionals, the implications are worth noting: Fitness has moved from being a tenant category to being a factor in how properties are valued. The path has not been without its pitfalls. 

The fall of the giants 
Perhaps California Fitness was the omen that not all was well in physical fitness in Hong Kong. Founded in Hong Kong in 1996, the brand operated 12 large-format (approximately 65,000 square feet in Megabox, Kowloon Bay) clubs across prime retail and commercial space. 

Its abrupt collapse in 2016 dumped more than 200,000 sq. ft of prime retail stock into the market. It also eroded trust in large gym chains and ushered in the new model of boutique studios and leaner 24-hour models. 

The pandemic took its toll, claiming Goji Studios and Fitness First. Physical Fitness buckled in 2024. 

These closures combined shed approximately 720,000 square feet of prime retail estate. They exposed the fragility of the traditional gym model, burdened by high overheads, rigid contracts, and a rapidly souring image amongst consumers.  

The rise of the agile operator 
In contrast, the post-pandemic era has witnessed the ascendancy of smaller, more flexible operators. In the 12 months leading up to mid-2022, 365 new gyms opened. 

The fastest-growing segment has been 24-hour gyms, which have gone from 10 centres in 2018 to at least 176 as of the date of writing, 16 August 2025. Of these, 24/7 Fitness Hong Kong, which opened on 16 July 2018 in Mid-Levels in Central, had expanded to 136 branches as at 16 August 2025. 

The company targets residential neighbourhoods like Kennedy Town, has multiple branches in some districts – its seventh branch will be opening soon in Tsuen Wan – and offers a convenient, reasonably priced, and always-open model. 

24/7 Fitness Hong Kong expanded to 136 branches by targeting residential neighbourhoods and offering a convenient, reasonably priced, and always-open model. Anytime Fitness exemplifies the 24-hour trend. 

Entering the Hong Kong market in 2013, the American franchise now operates 34 profitable clubs, with plans to reach 50 by the end of 2026. Its model – short-term memberships, global branches, online workout options, fitness tracking and community building – resonates with consumers who favour flexibility, autonomy, transparency, and convenience.

Decentralisation and suburban value 
Fitness centres are no longer confined to commercial districts. Operators have expanded into residential areas such as Tsuen Wan, Kwun Tong, and Yuen Long, responding to local demand and capitalising on falling retail rents. Brands like Go24 Fitness and Square Fitness have established branches in housing estates and mixed-use developments, offering proximity and community engagement.

This decentralisation has implications for property professionals. Fitness tenants now contribute to foot traffic and amenity value in suburban retail environments, enhancing the appeal of previously overlooked locations.

Mall integration and asset performance 
Asset managers can lean into wellness concepts to attract footfall and diversify their tenant mix. Fitness venues contribute to dwell time, repeat visits, and cross-shopping – particularly when paired with complementary uses such as juice bars, athleisure stores, health food outlets, and wellness clinics.

Hongkongers remain health-conscious, and malls that integrate fitness offerings may enjoy enhanced consumer engagement and asset performance.

Valuation implications 
As a valuer, I view the rise of fitness centres as presenting opportunities and challenges. Industry revenue reached $3.6b in 2022, a 30.7% increase over three years. Bearing in mind that smaller operators favour short-term leases and flexible formats, they require adaptive valuation models.

Fitness tenants may enhance the appeal of mixed-use developments, particularly when aligned with wellness and lifestyle themes.

Out-of-the-box paradigm shift 
Whilst many fitness centres sought to move into residential areas, all six of Palace Studios’ pods are firmly placed in Central. These are designed for freelance personal trainers or other wellness professionals, and can be hired by the hour via an app.  

Palace Studios is firmly planted in the future. Net-zero carbon operations, touchless access, premium amenities and the full suite of well-maintained equipment are strategically placed in wellness-dense areas.

The business model has several benefits in that it could be used to activate underused space, despite their inherently volatile income stream.

It’s time to rehabilitate fitness centres 
Fitness in Hong Kong has undergone a metamorphosis – from a transactional amenity to a strategic layer within the city’s evolving urban fabric. This shift demands a recalibration of valuation methodologies, leasing frameworks, and asset management strategies.

Where once fitness tenants were viewed with scepticism – high-risk, high-turnover, and operationally volatile – they now represent a class of occupier capable of enhancing footfall, diversifying tenant mixes, and contributing to long-term asset performance. Their presence in suburban retail environments and residential precincts has redefined the geography of value, drawing attention to locations previously deemed peripheral.

Moreover, the rise of agile operators and wellness-centric models has introduced new paradigms in space utilisation. Concepts such as Palace Studios demonstrate that fitness can activate underused space, align with sustainability goals, and appeal to a health-conscious demographic – all whilst operating outside traditional leasing norms.

As Hong Kong continues to reimagine its built environment, fitness centres shall play an increasingly central role. They are no longer burdens, but beacons of value to be cultivated. 

For the discerning property professional, the message is clear: fitness is no longer ancillary – it is elemental.