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Hong Kong retail space may surge by record amount in 2023 as mall owners aim to catch returning tourists
- The amount of new space for shops could quadruple from just over a million square feet this year to about 4 million sq ft in 2023, according to Savills
- Retail landlords are trying to time the opening of their shopping malls to coincide with the return of tourists after the city’s borders reopen
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Hong Kong may see a record amount of new retail space come to the market in 2023 as landlords try to time the opening of their shopping malls to coincide with the return of tourists after the city’s borders reopen.
With several large projects in the pipeline, the amount of new space for shops could quadruple from just over a million square feet this year to about 4 million square feet in 2023, according to Savills.
“There is hope that land checkpoints may reopen in the second half of 2022 which would help retail businesses, especially in the New Territories submarket,” said Simon Smith, regional head of research and consultancy for Asia-Pacific at Savills.
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Smith said the dramatic increase in supply might lead to “some moderation” of rental growth in noncore areas in 2023.
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The largest supply of new retail space came in 2019, at over 2.3 million sq ft, which included the opening of the K11 Musea shopping centre in Tsim Sha Tsui, according to Savills.
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