Singaporean retailers seize opportunity from lower rents, spending revival to launch Hong Kong operations

Executives of these retailers, ranging from food and drinks operators to fashion brands and even those engaged in entertainment and education, are expect to travel to Hong Kong, to get a first-hand look at the situation here once the “travel bubble” between the two cities starts from May 26.

“We are in advanced talks with four to five retailers and expect some to sign the deals during their visit here,” said Oliver Tong, head of retail at JLL in Hong Kong. One coffee chain plans to open more than 20 outlets in Hong Kong, Tong said, without disclosing the name of the retailer, adding that some of them eventually plan to tap the Greater Bay Area after establishing a presence here.

Tong said discussions with these retailers have been going on for months through virtual conferences, who plan to open stores ranging between 1,000 to 5,000 square feet, in Central and Causeway Bay, mainly targeting local consumers.

The timing of Singaporean retailers looking to set up in Hong Kong could not have been better. Rents in the main shopping districts of Central and Causeway Bay have fallen by nearly 80 per cent from their peak in 2013, according to Savills. Hong Kong’s economy also seems to have turned a corner, with a 7.8 per cent growth in the first quarter, while retail spending is gradually picking up, with the value of spending rising 7.5 per cent in the first three months of the year.