United States Chamber of Commerce: Hong Kong tourism industry continues to recover, driving down the vacancy rate of core area shops.

The Research Department of the American Union Commercial Properties pointed out that in the third quarter of 2025, the vacancy rate of shops in the four major core areas of Hong Kong, including Central, Tsim Sha Tsui, Mong Kok, and Causeway Bay, was about 11.9%, a slight decrease of 0.2 percentage points from the first quarter, marking the first decline since the first quarter of 2024. There were a total of 881 vacant shops, a decrease of 16 shops or 2% from the first quarter. The American Union Commercial Properties believes that the decline in the vacancy rate of shops in the core areas is mainly driven by the significant recovery of the tourism industry. With the continued recovery of the tourism industry, leasing and buying activities for shop spaces in the core areas are gradually becoming more active. Since the beginning of this year, the number of visitors to Hong Kong has continued to increase. According to data from the Hong Kong Tourism Board, the total number of visitors to Hong Kong in the first three quarters of this year reached 36.47 million, with 27.99 million from the mainland, an increase of about 12% and 11% respectively. Benefiting from the development of the tourism industry in Hong Kong, the industry with the highest percentage increase in the third quarter in the four major core areas is mainly the one selling tourist souvenirs and gifts, with 45 new shops, an increase of 13 shops from the first quarter of this year, a growth rate of 40.6%. Jiang Jingming, director of the American Union Commercial Properties, stated that the Hong Kong shop market is currently in a "consolidation period," and prices of shops are expected to continue to adjust. Banks and investors will maintain a cautious attitude, and the volume of shop transactions will remain at low levels with slight fluctuations. However, both rental and sales prices of shops in the core areas are significantly lower than their peak levels, attracting investors and tenants to move in successively. If the market rebounds, the core areas will be the first to reflect it. In the third quarter of this year, the vacancy rate of shops in the four major core areas has seen a decline, and rental transactions for shops have also increased. Jiang Jingming believes that under the strengthening of the tourism industry and the booming stock market, the economic situation in Hong Kong has significantly improved. The vacancy rate in the core areas may have already peaked and is expected to continue to decline slowly in the future.