Causeway Bay regains some of its vibrancy as Asian brands, mask vendors take up spaces vacated by Western fashion houses

Name: Hong Kong’s iconic Peak Tram set to return to service after year of renovation
Uploaded: 2022-08-30T23:30:14.000Z
Duration: 2 min 14 s
Description: Hong Kong’s iconic Peak Tram set to return to service after year of renovation

It is ahead of rival Hong Kong shopping zones in terms of rental recovery, according to property consultancies

With wealthy mainland Chinese tourists unable to visit, retailers have shifted their strategies to tap the domestic market

Reading Time:2 minutes

Why you can trust SCMP

The premises formerly occupied by Victoria’s Secret stands empty in Causeway Bay. Photo: Nora Tam

Cheryl Arcibal

Published: 7:30am, 31 Aug 2022

Restaurants, surgical mask vendors and Asian brands that mainly cater to Hongkongers have snapped up retail spaces left empty by upmarket Western brands such as Prada and Victoria’s Secrets in Causeway Bay.

This has helped the hip retail district regain some of its lustre, and puts it ahead of rival shopping zones in terms of rental recovery, according to property consultancies.

In the second quarter of the year, rents in Causeway Bay rose 7.6 per cent from the previous three months, according to Savills. Retail rents in Central, Mong Kok and Tsim Sha Tsui stagnated or fell slightly. Overall, shops across the city saw their rents decline by 5 per cent in the three months to June.

Vacancy rates in Causeway Bay shops dropped to 7.9 per cent in the second quarter from 10.5 per cent in the January to March period, according to Cushman & Wakefield.

02:14

Hong Kong’s iconic Peak Tram set to return to service after year of renovation

“Local fashion brands, F&B and bakeries are opening on Russell Street and Kai Chiu Road. These two streets are the major tier-1 streets in Causeway Bay,” said Lawrence Wan, senior director and head of advisory and transaction services, retail, at CBRE Hong Kong. “The local consumers and middle class are the main targets now.”

Market Place, an upscale Hong Kong supermarket, is set to lease 7,000 square feet in the Capitol Centre for HK$600,000 (US$76,500) per month. The space is part of Victoria’s Secret’s former flagship store in the city.