Will Hong Kong’s empty shops be refilled?

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While hopes were high that Hong Kong’s retail sector would roar back after pandemic-era restrictions were lifted in March 2023, the reality has been disappointing. Vacancy rates, while improving, remain stubbornly high compared to pre-pandemic levels. Hundreds of barren storefronts can still be found in shopping districts such as Mong Kok. Yet there are signs of recovery and according to one retail expert, the medium-term projections are positive. The Post looks at why shop vacancy rates remain high and what the future may hold.
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[@user-wz8hp2ix9f]

This video failed to mention on how ridiculous the commercial lease rates are.

[@Dimsumwuu]

And commercial real estate companies will always have a bias to give a more “positive” outlook since its what keeps their lights on.

[@GameFuMaster]

@@Dimsumwuu and to justify to the bank why their property is worth so much (via lease rates)

[@CoachKDM]

Typical SCMP shtick

[@snowsong100]

The low cost living standard has overcome Hong Kong consumers and high paid jobs are all retreated to Singapore. Extremely high rate rental market are unsustainable in Hong Kong any longer. Finally, everything has to be leveled with mainland. This is an inevitable future, all depends on how fast it can arrive.

[@leealex24]

I'm quite puzzled. Are HKers earning so little such that they have to always go to Shenzhen to shop? Usually, people who act like this are those who cannot afford to live in HK with their salaries/income at all at the first place. Bargains are always around us.

[@dreadlord76]

Was in HK few weeks ago, and it was my impression that everything is way too expensive compared to other Asian destinations, including Taiwan, Thailand, Malaysia, and Singapore. In some ways, it was more expensive than Tokyo.

[@jlee104]

It is def more expensive than Tokyo especially when HKD is pegged to USD which is strong against the Yen.

[@dxelson]

I'm from Macau, and I'm in Tokyo right now. I can guarantee it's cheaper to shop in Tokyo than HK 😂 not to mention the types of services and goods are much better than HK

[@GameFuMaster]

@@dxelson you really only go to hong kong for the cheapness tbh. And when Japan is both cheap and high quality, you can't compete

[@leealex24]

I'm quite puzzled. Are HKers earning so little such that they have to always go to Shenzhen to shop? Usually, people who act like this are those who cannot afford to live in HK with their salaries/income at all at the first place. Bargains are always around us

[@easternrazor3749]

When rental cost is more that retail income, i wonder why it is a mystery to many that retail shops stay shut.

[@zakaryloreto6526]

🎯

[@scalelabs]

Sooner or later, the property owner has to lower the rent to draw people back in. This is the only way out with so many more vacancies joining the share.

[@288theabe]

Convert those empty shops to residential areas. That'll help with overcrowding

[@buzzy33]

The rental rates are quite insane in Hong Kong 😕

[@卡卡d]

It is illegal to use commercial shops for residential purposes I think

[@vueport99]

Some have done so already. Fully staged units dressed up to look like a residential unit.. With explicit words to tell you you can't live in it. All kinds of scams now to trick people into renting properties that are not zoned or permitted for use as a residence.

[@LeoSpaceman69]

there is no interest in HK to keep rents lower, because the entire developer system depends on high rent

[@卡卡d]

@@LeoSpaceman69 so, according to you,the recent property market 「減辣」policies don't exist,then? Wow the news outlets in HK must had come together to conspire a fake policy!

[@pauldwalker]

in over three decades, i’ve never seen so many empty shops.

[@kennytam9514]

I visited HK from mid April to mid May 2024. My travel buddy and I talked to some shop operators. They still feel the pinch from a lack of business. However, my buddy and I felt HK still has a lot to offer to tourists. We visited several islands, visited all 4 shopping centres listed in this video, we also spent a day in Shenzhen. If you look at the whole package: we visited an island, hiked a trail, stopped for a seafood lunch, hop back onto a ferry to the terminal, took a train to Monk Kok, and had dinner there. One cannot enjoy this kind of experience in Shenzhen in one day. For a local that may not offer a whole lot. But for a tourist that is a day full of fun, food, and adventures. If the HK tourism board can market this kind of experience to tourists I really think that is an unbeatable package.

[@andaddplus]

hello HK police

[@ewnyMetroExpress]

You are doing a tourist thing, not local thing. That's different. But I still think regardless of these vacancies, HK still has a lot to offer although the living style might have changed after the 3-year pandemic.

[@leealex24]

I'm quite puzzled. Are HKers earning so little such that they have to always go to Shenzhen to shop? Usually, people who act like this are those who cannot afford to live in HK with their salaries/income at all at the first place. Bargains are always around us

[@andaddplus]

@@leealex24 they aren't HKers by blood

[@paulsum2496]

The border crossings have made it so easy for HK people to simply go where food and retail services are cheaper. From virtually anywhere in HK one can cross into Shenzen via the MTR within an hour. Mainlanders are also avoiding weekend and holiday HK shopping trips because hotel accommodations are ridiculously expensive.

[@Joe-dy7bb]

Doesn't Hong Kong have highest average rent on the planet? Maybe that's why.

[@albback8176]

HK will need to diversify beyond finance, retail and tourism. Costs are high and land availability is low. The GBA is becoming increasingly competitive as it adopts similar economic and legal policies as HK. Mainland side has cheaper and more available land. It is easier and more comfortable to raise a larger family on mainland side due to larger suites.

[@Ufiles473]

Maybe they should drop hotel prices, because hotels in Hong Kong are ridiculously expensive.

[@capricorn839]

I agree that hotel accomodations in HK is incredibly expensive. In the early 90s when I was in HK, even a small hotel room in the Tsim Sha Tsui area cost alot. Food wise, depending on the where you eat

[@tiffy623]

I was in Hong Kong last month and when compared to all the other years I’ve gone (every year around 2010-2016) it’s gotten more quiet. Places that use to buzz on weekends and nights are now less crowded and even empty late night

[@eg8343]

So afraid to say not only hk shops are closing because of mainland China. After China's crackdown on HK few years back this is now happening. Including foreign judges are leaving too. The people of HK are leav8ng HK because of CCP. This is only the beginning.

[@alexejvornoskov6580]

They are leaving HK to go to mainland... not exactly the explanation that you wanted to hear? People in HK were limited to one city - they arent anymore. And nevermind the fact that despite people leaving(including the judges) population in HK still grows - including that of white people... So they dont seem to find the situation as bad there as you make it sound😂

[@bjaigorgor]

What could the empty shops be refilled with? Every block is the same thing. Shops, food, mall plaza after mall plaza. Same thing wherever you go not just blocks but also at a different exit on the trains. Need something new and fresh

[@blueberrysmoothie]

"travelling time and cost"... It takes less than an hour to be in the heart of SZ, which would be about the same if you were coming in from New Territories or Tai Po on to HK Island. Considering the savings, convenience and rapid improvement of quality over the boarder, I don't see how HK is going to turn things around when prices just keep getting higher and higher with no improvement in quality.

[@user-aguy1013]

retail shops will not recover because of two things it is cheaper and more convenient to buy online, and the cost of a physical store out ways the pros of one

[@davidwong5197]

Or you can go to Shenzhen

[@user-aguy1013]

@@davidwong5197 yeah, but they are basically besides the factories, so that is the only way to outperform online stores

[@Sgscouser]

The city is dead.

[@vueport99]

Yup! The count down started the moment June 9 made someone North of the border nervous

[@RonNie-ws3hj]

Japan has also become the number 1 destination for many Southeast Asian citizens since it’s now easier to get visas and cheaper too!

[@fungj4126]

Retail Lament Causeway Bay shop rent changed from 1.2 million to 100,000

[@齐天大圣-t5f]

Robot, your other partners are here, too.

[@nicholasfooong.]

​@@齐天大圣-t5fyour username is of a bot

[@nicholasfooong.]

Hk is a failure

[@齐天大圣-t5f]

@@nicholasfooong. robot...😃

[@donnaamanda3292]

Just ask the seller to keep rude and unpatient with the customer.. they will gone..😂

[@davidwong5197]

Hong Konger are rude regardless

[@pan2aja]

Death of retail...better shop online ?

[@GameFuMaster]

rent is the biggest weakpoint to any economy. Getting money for doing little.

[@mawdervaart]

how would you suggest otherwise? Would you let me live in your apartment or house and charge me cheap rent? You're getting money for doing little as well, no?

[@GameFuMaster]

@@mawdervaart if you want to rent your home, then it should be managed by the government to prevent unreasonable rents. Also, a lot of people would like to buy a house, but simply can't afford it because a few people can buy dozens

[@jasonyau326]

With more Hong Kong Citizens willing to venture into Mainland China post pandemic to stretch their budgets, more are finding the advantages of shopping and eating just across the border in Guangdong Province. Besides their money going further, the customer service there is simply superior as lower Labour costs in China (still) means the ratio of staff to customer is simply higher than it is in Hong Kong. And although you will get slow and incompetent service in China from time to time, you don't get the rude, snappy, indifferent service one has to put up with often in Hong Kong in China

[@shaduck06]

thanks. i traveled to HK 1995-2019 and lived 2020. now I'm stuck on the wrong side of the Pacific. but what was the rise in cost of living 02/20-11/22, my brother-in-law said 80% SF Bay Area, while HK elderly said under 10%

[@fixpacifica]

Your brother-in-law says cost of living in the SF Bay Area went up by 80% in less than three years? I live in the Bay Area and that's nonsense.

[@lfc1981]

its the same with Singapore & Malaysia. large numbers would rather jam for long hrs on the road, just to shop / eat in Johor, closest state to Singapore.

[@gurumeditation8911]

Maybe they can be used as CCP re-education venues

[@steveh5882]

Retail brick and mortar stores are the same in the US.

[@bloat4hk]

The guy in the suit has no idea what he's talking about. Hong kong people will travel 1 hour + just to eat, find the best deal, and queue up in lines for the best food

[@colin_brawlstars]

The downfall is due to political issues

[@bloat4hk]

@@colin_brawlstars yep

[@leealex24]

I'm quite puzzled. Are HKers earning so little such that they have to always go to Shenzhen to shop? Usually, people who act like this are those who cannot afford to live in HK with their salaries/income at all at the first place. Bargains are always around us

[@antoniotsui6952]

Hong Kong has sadly lost its characteristics and international status as Asia’s business Centre after all that political turmoils. China’s hardline political policy crushing on HKG democratic system as one country two systems that was promised to people of HKG and it was an internationally recognized and a signed treaty between Britain and China, shamefully witnessed by the WORLD that China totally broke its promise. Certainly, the international community members have lost its trust on Chinese government and its legal system. It will take a very long time to regain that confidence again and even myself as Hong Kong Chinese overseas citizen, I have lost my appetite to visit HKG again!

[@Hkchinese888]

How lucky you are, I’m still stuck in a cubical room in Sham Shui Po 😆

[@wynn3077]

@@Hkchinese888 At least you have your freedom.

[@Hkchinese888]

@@wynn3077 in my 4 sq m room, yes

[@wynn3077]

⁠@@Hkchinese888Then it’s very easy to keep clean.

[@davidwong5197]

Please explain how China crushed the democratic system. Does this systemallow people to set people and shop on fire? I HAVE WATCHED jOEY sIU'S INTERVIEW ON dw. yOU PEOPLE ARE DISGUSTING.

[@deragoth4250]

Many retail shop internationally are not doing well with online shopping and also big business pricing out the smaller shop. Add in inflation, price of living crisis and no wonder things are not going well

[@ZYau-lc5ql]

Hong Kong have already been surpassed by Shenzhen in term of economy. It's just an ordinary city in China now

[@rayleeaustralia]

Want to fill them spaces? Drop the rent by fifty percent

[@vueport99]

You know they can't do that right? The banks will call on their loans because property values are based on what the rental rates are. So unless the landlord owns the properties out right, which most of them do not, they can't afford to drop the rent because the banks will ask for the billions in cash!

[@rayleeaustralia]

@@vueport99 no rental income and still have to pay mortgage. Wonder where the $$ is coming from

[@vueport99]

@@rayleeaustralia they're definitely hurting. It's a matter of time before the collapse comes. There's stories of smaller property owners who had to go back to work in order to pay the loan

[@jjbully]

I haven't been to Stanley for more than 20 years already.

[@andylai2135]

I doubt there will be a rebound about the current and probably continuous downturn in Hong Kong retail sectors. Many middle-class with the strongest purchasing power have left and the refill of the population from other aspects can’t resolve this empty leases.

[@boydseabiscuit2635]

like how it says 'will' rather than 'when will'.

[@DreamWave69]

Technically, the HK Guy speaks the truth; not only in Hong Kong, but all over the world. The main cause for idle shop spaces is excessive rental costs. Everything is expensive in HK with the same product you can get from SEA or other Asia countries which is cheaper. Often I shock when visit HK there product there is more expensive than I visit in Japan . Well, if the landlord is able to keep the shop empty but is unable to cut the rental fee, this puzzles me.

[@florenceyim1699]

If the landlord chop rental fee, it will reduce the property value.

[@JJ-iu6sr]

HK needs to go through deflation....the cost of its services and goods DO NOT justify the value consumers are paying.

[@wubba1575]

After 2 years in SG, we are returning back to HK…..more and more people are returning….it will get better!

[@EvelynChew88]

It seems many tourists from SE Asia has bypassed HK in favor of Japan as a tourist destination even before the pandemic. That's a huge impact.

[@marvinsantos2977]

HK is just another China city. nothing unique.

[@supremewhip]

Where’s that LastChang troll? I’m waiting for what he’s going to come up for this one 😂

[@pan2aja]

Lastchang got banned... Nextchang are being lazy I guess

[@ktefccre]

he's great! I love reading his funny comments. You are just a troll.

[@supremewhip]

@@ktefccre you must be missing a chromosome.

[@fungj4126]

bot

[@Hkchinese888]

I live in a 2mx2m cubicle room in Apliu St, Sham Shui Po, Kowloon peninsula, Hong Kong State,😆

[@nicholasfooong.]

Hong kong country

[@darth.severuss]

My pets live in an 8mx8m cubicle room

[@Hkchinese888]

@@darth.severuss that can accommodate 20 hk ppl by our standard

[@darth.severuss]

@@Hkchinese888 I don't think you understand what I'm trying to express.

[@Hkchinese888]

@@darth.severuss What do you want to tell

[@jackboone6794]

May be. At what price?

[@gdoe00]

Hong Kong brick-and-mortar stores and restaurants have almost zero competitive advantages.

[@mikebarton]

Whilst they outlined many reasons for this specific instance it is a worry that many simply use online options. Online options do *NOT* benefit our communities. They remove a lot of sociability fron our world. I get why consumers are going to Shenzhen. It's just a short train ride and prices drop hugely. Price points are important. HK rents are huge as well.

[@yiqcreations]

It is not exactly because of pandemic, although it thus triggered it. It is because online shopping is gaining more shares and acceptance by consumers. It is cheaper and more convenient.

[@Mar-enfrance]

Agree with you.

[@screenapple1660]

U.S. economic sanctions on officials cannot be undone or removed through war, hacking, or hostile aggression. Once imposed, these sanctions remain in the system and are very difficult to lift. For example, if a sanctioned official went to a five-star Michelin restaurant abroad and tried to use a U.S. credit card, the restaurant manager would likely confiscate and cut the card. Pay or not pay(use National Security law such as "Foreign Forces" to harass or assault on foreign restaurant). The owner would automatically shut down the restaurant in Hong Kong; fly back home country and stop communicating or do business with sanction official. For example, Putin can't access US goods. -- Policy Change: A shift in U.S. government policy towards the sanctioned individual or entity. -- Legal Action: Successfully challenging the sanctions in court. -- Diplomatic Negotiations: International negotiations and agreements that lead to a review and potential removal of sanctions. -- Compliance: Demonstrating compliance with specific conditions set by the U.S. government.

[@DailyGPT365]

Thats what happen after the HK riots. HK is a laughing stock in the world now. Blame those HK rioters.

[@paulpoon7253]

Now is NEW HK, Fully Mainlandized‼

[@joeldujsik]

need a new government... oh, that's not going to possible.

[@siarung1972]

I'm afraid to go to Hong Kong because ccp will arrested me all others foreign travelers. Others words ccp well kidnapped you an accused you spy 😂😂😂😂😂😂😂😂😂

[@jeromefitzroy]

HK is finished. HK’s selling point was freedom, now with no freedom, it’s no longer attractive.

[@jonwick7635]

heh, not just HK, Indonesia, SEA too

[@UsernameNYIC]

When 1 HKD = 0.8 CNY, it probably will be refilled.

[@Dreamer10888]

The hair stylist should be an economist

[@icendia01]

Always enjoyed the German (buffet) food and Seafood in Murray House. Gorgeous food accompanied by amazing views you can still have a decent experience indoors on a rainy day.

[@nickfuries6380]

I was searching for this recently but.. think they have closed down ~ 2 months ago

[@worldlife9834]

Hong Kong isn't recognized as an international city. International brands continue to remove their exposure to an unprofitable market. There is a real feeling of racism and discrimination against foreigners in city. Businesses and shops have only Chinese working in them which highlights that Hong Kong isn't racially diverse. Bangkok is generations ahead of Hong Kong in tourism and business. Shopping malls in Bangkok have received massive investments. Hong Kong can never compete with Bangkok. Foreign tourist refer to Bangkok as a home away from home.

[@leealex24]

KL and Bangkok are retail havens now

[@adrianwarthunder1234]

welp despite china censored on youtube china insights channel are true not fake.

[@surfrescue3232]

I can't believe someone who is a journalist thinks the word IDYLLIC is pronounced IDEAL-IC. Sad really.

[@axeltech9914]

Thank you china 😂

[@helloisitmeyoulookingfor5045]

And we all believe what the guy from JLL is saying 😂

[@unvaccinatedAndPureBlood]

All be design. The northern overlords could help to relieve the burden but they aren't. Ask, why not? Because they want to ride in like shiny white knights to save us all.

[@jamestreanor182]

REKT

[@MasterLeong888]

the worst is over but the recovery will be slow

[@ramatgan1]

London is much much worse. The UK is in severe decline.

[@michaelgothenburg364]

With shops catering for mainland China tourists, yes. Other tourists, no.

[@longcimb]

Hong Kong should focus on doing more what it is their key advantages....as a financial gateway to China and to maintain, offer and establish key instruments to reduce risk of USD sanctions for mainland companies like the Digital Yuan backed USD collaterised in HK and cryto based currenies from BRICs

[@hh0686]

That Terrance guy is dead wrong, that's why he's only a hairstylist and will stay as a hairstylist.

[@MetaView7]

Life is a Cycle. What goes up must come down. Tomorrow the sun will rise again.

[@aarcoh]

HAPPY BIRTHDAY TO THE GREAT LEADER XI JINPING! THE WORLD HAS BEEN TRULY BLESSED WITH XI JINPING'S BOLD AND VISIONARY LEADERSHIP

[@Alex.8081]

this is a half baked news, LOL

[@ddnn974]

Many things cannot be mentioned 😂

[@alvindurochermtl]

Problem lies in greedy landlords. They would rather keep the vacant shops empty than to lower the rent for smaller tenants to move in.

[@scalelabs]

Sonner or later they have to drop otherwise they will get no income

[@molamolalaaa2968]

@@scalelabsThey won’t drop because their land will fall in value on their financial records , and that’s a “loss”. That’s why they’d rather leave them empty then have their book value depreciate.

[@BatCountryAdventures]

3:00 A lot of room to build the right experience for local people. No... There isn't. :D There is are malls in SZ and GZ where you can have an indoor go-karting race course or sky-diving tube etc etc. No... HK can't compete with mainland unless the landlords are willing to lower their rents and the operator train their staff to offer better services. I have faith that HKers will learn to reinvent itself has it had done before but Hong Kong will not be the same as it was 10 years ago.

[@tvl6347]

Some of my HK friends are doing the same. They spend the weekends in Shenzhen for food and shopping.

[@liminalist451]

but hongkongers retail ppl very rude and fierce..im scared

[@DailyGPT365]

Yes, rude HK people is the problem. Especially after the HK rioters made HK into a laughing stock.

[@capricorn839]

You need to be fierce and loud to win in any bargaining with the retail people. Trust me

[@DreamWave69]

If you unable to read Chinese even worst, they will scream at u Diu... ... .... Don't know how to read don't come eat, don't interrupt m business. That is my last first and last time in HK

[@Nrylw-w6t]

Who wants to travel to a country where the staff is rude and things are expensive?

[@capricorn839]

When I was in HK, it is usually the elderly people who are rude. Rude in the sense due to communication problem. Most of the elderly do not speak or understand english. Try to converse with them in simple cantonese or mandarin and you'll realise that they are actually not rude

[@justinkan1696]

Hong Kong needs to up the ante especially on their customer service level....

[@leealex24]

Prices also.

[@vueport99]

Don't worry, soon it'll be replaced by mainlanders and mainland chains

[@pregret]

It won't heal until the prices come down

[@rosalynnchow5057]

Rental too high. Ridiculous and overly greedy landlords.

[@iorifori91]

02:53 big bs, he just want to falsely promote so ppl will come

[@TheAsiandramafreak]

China, China, China…lol Too afraid to mention it I guess

[@kanlyfai]

As a hongkonger,i cant explan how many vacant places ive seen.

[@KxKxA-d6z]

Another reason includes locals holding back spending to spend on holiday outside of HK. Even those typical international brands like Zara. It’s more expensive shopping here I’m assuming cause they pass on the high rent of operating here to customers. It’s not expensive here, it’s overpriced and there aren’t anything that compensates for that i.e nicer family experience, wider choice etc. Plus on the side, super high interest rates means more goes to paying your mortgage.

[@Tummymunster]

How about greedy landlords?

[@capricorn839]

They are everywhere

[@thisistotallyfine]

Why go to to H&M in freaking Stanley when I can go to any Uniqlo stores nearby?

[@flyingzone356]

Short answer: NO, for as long as Hong Kong is under the yoke of one of the most ruthless authoritarian dictatorships in the world.

[@Enalog3]

Reduce rental prices. Problem solved.

[@colin_brawlstars]

It is not due to the pandemic. It’s due to China’s policies on Hong Kong causing HK people to leave the country

[@chenghonggoh4746]

HK is fast becoming just another Chinese city. Why pay more for the same thing that you can get much more cheaper up north?

[@hh0686]

Cuz HKD is based on the foundation of USD. Hence, you call it One Country, Two Systems.

[@cim888]

HK IS a Chinese city, the problem is that they are fighting a losing battle against their owners. Look at Macau, they accepted their place in China and now are prosperous full of happy citizens, unlike HK's angry, toxic ones

[@卡卡d]

It has always been a Chinese city since 1997 by basically every standard you can think of

[@hh0686]

@@卡卡d just because Hong Kong and Macau are Chinese cities, doesn’t mean they cost cheaper than other Chinese cities

[@卡卡d]

@@hh0686 ok

[@JohnSmith-ps7hf]

Whould would open stores in a COVID communist ghost city anyway?

[@lateblossom]

I wouldn't mind visiting Hong Kong. I feel it's one of the most unique places over there.

[@richmond73]

Because of greed

[@ToniDuke-s7k]

Right now, the entire world is feeling the economic pinch. Name a country that isn’t. China 🇨🇳 is not into economic “bailout programs”. Eventually, as things improve worldwide, Hong Kong will have businesses in those empty shops. This city has seen many ups and downs during its history.

[@WifeMamaArtist]

It’s the same in ALL major cities across the globe. Yes, people shop online, but the increase is BECAUSE there is often no other option….

[@Brevicauda]

There's more than just one variable that make Hong Kong situation like today. I don't feel optimistic at all

[@ericnada80]

If you still in obedience your master will make your life difficult

[@Vincent-mv6ux]

Shops are closing in both mainland China even in Tier 3 cities, the economy isn't gonna improve anytime soon and by extension this was expected to happen in HK, I understand the optimism but also let's be realistic, HK is never going to the way it used to be.

[@sebastianvette1]

I think most HK people don't care

[@christophertadeo6120]

U know even that reporter won't go to hongkong 'alone'😀

[@JJ-rp2df]

High gdp per capita, overpriced property and rich bankers will save hk surely