Large retail rents on Russell Street stabilize after decline

SighingCashier · 2026-03-16T11:32:37+00:00

Recent increases in visitor arrivals to Hong Kong have led to a stabilization of retail rents in core Causeway Bay locations. Multiple large retail units on Russell Street have maintained unchanged rental values, though they remain significantly lower compared to peak periods. Additionally, retail rents in Tsim Sha Tsui continue to show prolonged and notable declines.

SighingCashier

2026-03-16 11:32:37

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The number of visitors to Hong Kong has recently increased, driving core district shop rents to stabilize. Causeway Bay’s Russell Street, once the most expensive retail location in the world, has several large shops with rental values remaining unchanged for the next year.

The 2026/27 draft rateable value from the Rating and Valuation Department shows that the shop at 2-4 Russell Street, Plaza 2000, Ground Floor, and Floors 1-3, previously leased by Italian luxury brand Prada, maintains a rental value of HKD 24.42 million, down 66% compared to its peak.

The shop at 38 Russell Street, JIN CHAOTIAN Center, Ground Floor A, B, C units, and two floors of duplex units on the first floor, with a total area of approximately 7,102 sq ft, leased by Futu Securities, has a latest rental value of HKD 17.28 million, unchanged year-on-year.

However, the shop at L2, 214-215, Times Square, leased by Christian Dior, has a latest rental value of HKD 13.32 million, down over 10% annually, reaching a five-year low.

The massive shop at about 50,000 sq ft in Causeway Bay’s Jinghua Center is currently leased by CHANEL. Its rental value for the next year (excluding exterior wall advertising space) is HKD 48.9756 million, a slight decrease of 3.77% year-on-year, roughly half of its peak rent of over HKD 100 million.

In Causeway Bay’s second-tier streets, once the “King of Rent” in Hong Kong, the shop at 2- A, King Lung Street, leased by a pawnshop, is only about 50 sq ft. Its rental value for the next year is HKD 744,000, up approximately 29.17% year-on-year. However, compared to the peak rental value of HKD 3 million during the retail boom in 2015/16, there is still a 75% gap.

In Tsim Sha Tsui, the shop at 1881 Heritage, 2A Canton Road, which had experienced six consecutive years of declining rent, now has a rental value of HKD 15.48 million, unchanged year-on-year but more than 80% below its peak. Originally leased by American jeweler Tiffany & Co, it is now leased by Japanese streetwear brand A Bathing Ape.

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