Between 2007 and 2011, total retail space in Hong Kong increased by 3.9 percent (6.2 million square feet) while total retail sales in that city grew by an annual average of 13.1 percent, according to South China Morning Post (quoting data from Jones Lang LaSalle).

New commercial property locations at East Kowloon and the West Kowloon waterfront are expected to address this shortage at lease in part, as is the redevelopment of existing buildings to increase the retail component in them. Nevertheless, over the next four years, the supply of retail space in Honk Kong is expected to grow by only 5.4 million square feet. This supply shortage will likely lead to substantial rent increases and force some merchants into taking higher-level space or basement space.
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The article notes that the number of mainland visitors to Hong Kong is expected to increase by 10–15 percent per year. This growth in tourism, coupled with the appreciation of the Yuan against the Hong Kong Dollar paints an overall bright picture for the Hong Kong retail industry.

Last Updated on November 13, 2012 by Ramin Seddiq