Hong Kong malls see ‘gradual recovery’ with new stores and events: Hang Lung CEO

Hong Kong's shopping centers are experiencing a gradual recovery, with the CEO of Hang Lung Properties, Weber Lo Wai-pak, stating that the outlook is improving. Lo believes that operators should use new stores and engaging events to counter locals' preference for cross-border shopping trips. The company's malls recorded single-digit sales growth in July, and Lo expects even better performance in the fourth quarter due to a pipeline of new shops opening.

Many people left Hong Kong during the recent summer holidays, so the company will need to closely monitor the situation for a few more months. The leasing situation in Hang Lung's shopping centers in Causeway Bay is steadily improving, with Lo predicting further improvements in the fourth quarter as new stores open and renovations are completed.

Adriel Chan, chair of Hang Lung Properties, noted that merchants' willingness to invest in Hong Kong indicates confidence in the local market, and he believes that making shopping malls more attractive, comfortable, and convenient will keep locals shopping locally. Hang Lung Properties owns the Fashion Walk complex, which has undergone a transformation following the closure of an H&M store in late February.

The massive, four-level retail space is now leased to the Lung Fung Group pharmacy chain, with the first and second floors housing a Chinese women's fashion brand and restaurants planned for the remaining floors. The Amoy Footbridge, a community infrastructure project funded and built by Hang Lung Properties, has been launched in Kowloon Bay, leading to a single-digit percentage growth in foot traffic at Amoy Plaza.

The occupancy rate at Amoy Plaza is currently nearing 100 percent, and rents are expected to rise in the future.