Hong Kong might see 90 per cent of mask shops close, freeing up 150,000 sq ft of retail space, after face-covering mandate ends

Removal of mandate comes about a month earlier than expected, Bridgeway Prime Shop Fund Management CEO says

Shops in popular districts will all be taken by June with mainland Chinese travellers flocking to the city: Ricacorp executive

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Face masks on sales at a shop in Hong Kong’s Mong Kok district. Photo: Edmond So

Published: 8:30am, 1 Mar 2023

Hong Kong might see up to 90 per cent of mask shops – estimated at 300 currently – close by the end of next year after the city all but ended its mask mandate after almost 1,000 days, freeing up 150,000 sq ft for other businesses.

“I estimate that as Hong Kong returns to normal, 90 per cent of mask shops will eventually close down,” said Edwin Lee, founder and CEO of Bridgeway Prime Shop Fund Management. “But not right away, because landlords need time to find new tenants with long-term leases.”

Hong Kong leader John Lee Ka-chiu announced on Tuesday that the city’s indoor, outdoor and public transport mask requirements would be scrapped from March 1. People entering high-risk premises, such as hospitals, would still be required to wear face coverings.

The removal of the mandate came about a month earlier than expected, Bridgeway’s Lee said. There are currently about 300 mask shops across Hong Kong’s 18 districts, most of them on short-term leases, he added.

Their rents are about 70 to 80 per cent cheaper than before the coronavirus pandemic, Lee said. Some rents are as low as HK$100,000 (US$12,739) per month in Russell Street, once the priciest retail strip in the world commanding rents in millions per month.

Not everyone will stop wearing masks after Hong Kong dropped its mandate, as seen in Macau, Lee said. About 30 per cent of the shops will close by the end of March, with a further 20 per cent by the end of June, he added. About 70 per cent will close by the end of this year and 90 per cent by the end of next year, Lee said.