High street rents rise by 2.6% YoY in Q1

Central led the performance, with rents increasing by 1.9% QoQ.

Overall high street rents rose by 2.6% year-on-year (YoY) and 1.3% quarter-on-quarter (QoQ) in the first quarter of the year, despite a 7.8% YoY decline in total retail sales during the first two months, according to Colliers.

Central led the performance, with rents increasing by 1.9% QoQ.

Leasing activity was driven by mainland and overseas brands, with notable transactions including CR7®Life at Times Square, Cosme at Yue Hwa International Building, and Heirloom Fortune on Haiphong Road.

Kathy Lee, Head of Research and Retail Consultancy at Colliers Hong Kong, said smaller premises will remain in demand, whilst larger spaces will attract online-to-offline operators.

“In the coming quarters, retail is bound to be on the bright side thanks to the opening of the Kai Tak Sports Park, further boosting inbound tourism,“ Lee added.