Luxury brands mark return in HK’s retail leasing market

Chanel is amongst the brands that leased space in the city.

Tourists are not the only ones returning to Hong Kong, even luxury brands.

According to CBRE, May saw the return of several high-end brands in the retail leasing market, including Chanel.

The fashion luxury brand committed to a portion of the retail podium, measuring 18,000 sq ft, at Capitol Centre in Causeway Bay for a reported monthly rent of about $4.0m or $222 per sq ft.

Apart from Chanel, Luk Fook Jewellery also leased new spaces in the city.

Data from CBRE showed that the jewellery brand leased two ground floor shops, measuring 2,500 sq ft in total, of Golden Crown Court at 66-70 Nathan Road in Tsimshatsui for a monthly rent of $550,000.

The monthly rent represents a 38% discount from the last lease committed in 2019.

The Chanel and Luk Fook Jewellery deals are amongst the biggest retail leasing transactions in May.

Meanwhile, CBRE reported that investment market sentiment improved in May, with some sizable deals recorded in core areas. 

Amongst these deals include the two ground floor shops (3,076 sq ft in total) at Mongkok Building in Mongkok which the Tang-shing-bor family sold for $150.0m ($48,765 per sq ft) at an estimated yield of 3.6%