
Steady retail leasing seen in H2 on strong F&B demand
F&B groups catering to mass and mid-market consumers are expected to remain the key drivers of leasing demand.
Hong Kong’s retail property sector is poised for stable leasing activity in the second half of 2025, led by strong demand from food-and-beverage operators and retailers focused on affordable goods and services, according to CBRE’s latest market review.
F&B groups catering to mass and mid-market consumers are expected to remain the key drivers of leasing demand, alongside pharmacies and value-focused chains targeting local communities.
CBRE noted improving tourist footfall and recovering local consumption will continue to support demand for high street retail space in core districts.
In the first half of 2025, vacancy rates across core high street locations fell to 7.1%, down from 7.8% at the end of 2024. Notably, Tsim Sha Tsui and Mong Kok saw marked improvements, while Causeway Bay experienced a mild rise in vacancy.
Retail rents for high street shops rose by 0.9% in Q2, matching Q1’s growth and bringing the year-to-date increase to 1.9%. Prime shopping mall rents remained flat. CBRE forecasts high street rents will grow modestly by 0–5% through the end of the year.
The leasing rebound was powered by F&B operators, who leased 134,000 sq. ft., the highest figure recorded since 2009. Gold retailers, jewellery dealers, and pharmacy chains also contributed to new take-up, as retail sales stabilised and tourism began to recover.