The Hong Kong retail market experienced rapid growth in the decade since the launch of Individual Visit Scheme in 2003. Growth was propelled by tourists from Mainland China consisting of a large and expanding urban middle-class with a strong appetite for lifestyle consumer goods and services.
Strong demand for luxury goods has resulted in robust demand from luxury retailers and other tourist-oriented trades for prime retail premises in core locations. Combined with the lack of supply helped drive rapid growth in rents and ensured Hong Kong rose to become one of the most expensive retail destinations in the world.
However, since 2014 the market has experienced a slowdown due to the changing spending and travelling patterns of Chinese tourists. While the trend is set to continue and is already impacting the structure of the Hong Kong retail market, this Major Report by CBRE Hong Kong Research examines the structural shift currently taking place in the Hong Kong retail market and provides a series of recommendations for retailers and landlords to ensure they survive the slowdown and are best positioned to take advantage of the opportunities set to emerge in the coming years.
Published: 16 September 2015
By: CBRE Research Hong Kong