Discounted Rents Propel Mainland Chinese Retailer Expansion in Prime Hong Kong Locations Amid Slumping Market

Lower rent prices aid retailers from mainland China in securing top locations in Hong Kong. The declining retail sector is pushing property owners to offer more substantial rent reductions, creating chances for companies to broaden their presence in the city. The deteriorating retail sector is pressuring landlords to offer larger discounts, presenting opportunities for businesses to grow within the city.

Cushman & Wakefield recently released a report about the city's retail market, predicting that the immediate demand for leasing on the main street will likely be fueled by well-known retail businesses and food and drink franchises from the mainland.

According to JLL, new lease agreements by brands from mainland China saw a significant increase of 215% in the first seven months of the year, compared to the same period last year.

Balabala, a children's clothing store headquartered in Shanghai, is preparing to launch its 11th and 12th outlets in Hong Kong in November. These stores will be located in the Hopewell Mall Extension in Wan Chai and Telford Plaza in Kowloon Bay, respectively.

Eric Lee, who manages the company's operations in Hong Kong and Singapore, stated that each location will take up over 1,000 square feet. Balabala, a subsidiary of the Chinese fashion company Zhejiang Semir Garment, will be occupying these spaces.