Local retail rents slide 5% as card spending flees offshore

One-third of credit card transactions migrate abroad.

Hong Kong’s neighbourhood centre rents may fall by up to 5% this year, impacted by e-commerce growth and increased northbound spending, according to a Knight Frank report.

By the end of 2025, online sales were projected to reach $35b. Local online retail sales exceeded $30b annually from 2021 to 2024, up from $20.6b in 2020.

In line with this, credit card transactions reached $801b in the first three quarters of 2025. Overseas spending accounted for 34.1% during the period.

The figures mean that over one‑third of card spending now occurs abroad, reflecting a rebound in travel and increased online shopping, said Helen Mak, Senior Director, Head of Retail Services.

Meanwhile, prime street shop rents are projected to rise 5–10% on the back of recovering luxury sales and new brands' preference for high-visibility locations.