Escalating Shop Vacancy Amidst Restaurant Failures in Hong Kong: A Deep Dive into the Midland Report

The number of empty storefronts in Hong Kong remains elevated due to restaurant closures, according to a report by Midland. The report indicates that restaurant and food and beverage industry shutdowns have led to the third-quarter vacancy rate reaching its peak since September 2020.

An increasing number of businesses are exiting the retail market in Hong Kong's primary commercial areas. This is due to customers making more purchases in mainland China, resulting in the highest shop vacancy rate in nearly four years. Despite the growth efforts by brands such as Giorgio Armani, Mango, and Prada, a fast recovery is not anticipated.

The count of unoccupied storefronts in Central, Causeway Bay, Mong Kok and Tsim Sha Tsui increased to 874 in the third quarter, up from 720 in the first quarter, according to a report released by Midland IC&I on Wednesday. The proportion of empty shops surged to 11.7 percent, which is the greatest it's been since it reached 12.6 percent in late September 2020.

The company, also referred to as Midland Commercial, releases industry-specific reports twice a year, in March and September.

"Alterations in the community demographics and residents heading north for purchases have resulted in a decline in the local economy," stated Andy Kong, the head of sales. Due to these patterns, "merchants are wary of launching new stores", he continued, referring to numerous restaurant closures.

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Residents of Hong Kong are searching for deals on roast chicken, soap, and other items at American warehouse stores located in mainland China.

Dining establishment owners in the four central regions couldn't survive intense rivalry. The food and drink businesses experienced 56 closures in the last half-year, as indicated by the report. Approximately 52 non-Chinese eateries gave up their leases, while Chinese dining places and takeaway services each faced nine shutdowns, according to Midland.