High street rents to outperform non-core retail rents

Rents rose 1.0% QoQ and 7.4% YoY in Q2.

Even with declining retail sales, high-street rents remained stable, rising 1.0% QoQ and 7.4% YoY in Q2. Rents in Causeway Bay also increased, rising by 1.8% QoQ.

In 5M 2024, retail sales dropped 6.1% YoY due to increased northbound and outbound travel by residents.

Colliers expects high street rents to outperform non-core retail rents in the upcoming quarters as attractive rents drive retailers to secure shops in prime locations.

High-end retail brands are amongst those taking advantage of lower rents, with plans to expand or relocate to first-tier locations.

Colliers noted that this trend will increase demand for high streets in core districts and Grade A shopping malls.