Shift in Hong Kong Commercial Leasing: Japanese, South Korean, and Thai Brands Rise

Hong Kong’s commercial real estate landscape is experiencing a notable shift as international retailers actively expand their presence. Data provided by real estate services firm Cushman & Wakefield indicates that international brands originating from Japan, South Korea, and Thailand collectively represented 36% of all new entrants into Hong Kong’s retail property market during the first nine months of 2026. This proportion reflects a seven percentage point increase from 29% recorded in 2025, marking a three-year high for these specific regional markets. In contrast, the market share of mainland Chinese retailers decreased slightly, falling from 38% in 2025 to 36% over the same period, while brands from other international territories accounted for the remaining 28%.

The influx of regional businesses is demonstrated by several recent store openings across major commercial hubs. Japanese fashion retailer Cullni established a presence in Wan Chai, while second-hand merchandise merchant Ragtag leased space at Hysan Place in Causeway Bay. South Korean footwear brand Khiho entered the territory via a storefront at K11 Musea in Tsim Sha Tsui. Meanwhile, Thai enterprises have made similar inroads, exemplified by woven-bag manufacturer Sugar Monday setting up at Telford Plaza in Kowloon Bay, and gelato retailer Blendies opening its inaugural overseas branch at K11 Art Mall in Tsim Sha Tsui. Local entrepreneurs are also taking advantage of market conditions, with South Korean dining venture Seoul Recipe expanding its footprint by opening an 800-square-foot outlet at Champion Tower in Central to cater to corporate lunch demand.

Market analysts attribute this commercial momentum primarily to ongoing regional tourism recovery and favourable real estate conditions. Figures from the Census and Statistics Department show that Hong Kong's retail sales grew by 8.5% year-on-year through August 2026, supported by an 11% increase in visitor arrivals as reported by the Hong Kong Tourism Board. Furthermore, leasing costs have adjusted significantly, with prime high-street commercial rents across key districts—Causeway Bay, Central, Mong Kok, and Tsim Sha Tsui—holding at approximately 50% below their 2019 peak levels.

Industry experts observe that foreign enterprises view Hong Kong as a strategic testing ground and launching pad to refine business operations for broader expansion across Greater China and wider Asian markets. Although mainland Chinese retailers continue to expand, their growth velocity has normalized compared to previous years. Property market forecasts suggest that prime retail rents will record modest, low single-digit percentage growth through the end of the year, while rents within the food and beverage sector are expected to remain under operational pressure