The area, which features harborside malls and central shopping hubs, ranks second globally in rents, behind London’s Bond Street with rents of GBP19,228, according to the recent annual Global Luxury Retail report by property consultancy Savills, as reported by the South China Morning Post.
Milan’s Via Monte Napoleone ranks third at GBP16,000. The figures reflect data from the fourth quarter of 2025.
This means changes have occurred among the top three spots. Last year, Tsim Sha Tsui was the most expensive retail hub in the world, followed by Bond Street and New York’s Madison Avenue.
People are walking in Tsim Sha Tsui in Hong Kong on June 13, 2024. Photo by NurPhoto via AFP |
“After the strong rebound in 2024, luxury rental growth slowed sharply in 2025, highlighting a more normalized and cautious market environment,” said Marie Hickey, global retail research lead at Savills.
“Europe continued to outperform other regions, but growth has been highly concentrated, with sustained demand colliding with persistent supply constraints on a limited number of prime streets, a trend that we expect will continue well into 2026.”
Hong Kong’s retail sector maintained its recovery momentum in the opening months of 2026, buoyed by robust tourism activity and large-scale events, according to property consultancy Knight Frank, as reported by Real Estate Asia.
Total retail sales climbed 11.8%year-on-year to HKD72.4 billion ($9.3 billion) in the first two months of the year. Discretionary categories drove much of the growth, with jewelry, watches and clocks, and valuable gifts posting a 27.8% year-on-year surge, pointing to a revival in high-value consumer spending.
The city remains a preferred luxury shopping destination for high-net-worth individuals (those who hold at least $1 million in assets) particularly from mainland China and the United Kingdom.
It holds ninth place globally for new luxury store openings and is one of only five markets to record growth in that category, alongside New York, Paris, Milan, and Miami.
“Luxury brands are clearly taking a longer-term strategic view of the market and are recalibrating portfolios to get closer to their consumers,” said Anthony Selwyn, co-head of global retail at Savills.
Selwyn noted a shift in brand strategy following the pandemic. “In the immediate aftermath of the pandemic, with reduced international travel, we saw brands increasingly focus on large, affluent, relatively underserved domestic markets,” he said. “While this trend will continue, we will see our core luxury markets become increasingly more competitive, with building quality and pitch being of the utmost importance.”
Hong Kong projects visitor arrivals to reach 53.8 million this year, an 8% increase over 2025.
A separate report released last week by Midland IC&I, the commercial property arm of Midland Holdings, indicated that Hong Kong’s luxury retail segment had “shown signs of recovery” as of the first quarter of this year.
The report tallied 362 operators in the watches, jewelry, and high-end accessories category across the city’s four core shopping districts of Causeway Bay, Central, Mong Kok, and Tsim Sha Tsui, a net gain of seven outlets over six months.
The figures reflected the “resilience of high-end consumption in selected core districts,” said Dave Ma, chief executive of Midland Holdings and Midland IC&I.
Ma added that leasing activity in the luxury segment was expected to stay strong in the coming months, supported by growing arrivals from mainland China and overseas, as well as the gradual easing of the U.S.-Israel conflict with Iran.
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