{
  "id": 14112363,
  "title": "King Fook expands with US$34 million Admiralty lease despite slow luxury sales: analysts",
  "url": "https://urgent.news/2026/10/13/king-fook-expands-with-us-34-million-admiralty-lease-despite-slow",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-13T04:00:09.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/china-business/article/3370654/king-fook-expands-us34-million-admiralty-lease-despite-slow-luxury-sales-analysts"
  },
  "original_language": "en",
  "account": "King Fook Jewellery Group has leased a 550 square metre retail space at Pacific Place Phase II in Hong Kong's Admiralty district, valuing the deal at about US$34.2 million in base rent over six years. The six-year lease, starting in February 2028, carries a monthly base rent of HK$3.73 million, as per a company filing with Hong Kong Exchanges and Clearing. Analysts see this investment as a sign of confidence in Hong Kong's retail market, despite a slowdown in luxury goods demand. Stanley Poon from Centaline Commercial noted a rising number of visitors to Hong Kong this year, supporting growth in retail sales, particularly in jewellery and watch sectors. The average rent is deemed reasonable for an upscale shopping centre with numerous luxury brands. Financial commentator Simon Lee added that daily rent for the new store is around HK$120,000, which is still affordable for the company. However, Terence Chong from the Chinese University of Hong Kong expressed concern, stating it would be challenging for King Fook to generate enough revenue from luxury watch sales to cover the rent, given a global decline in luxury goods demand, especially in the wake of mainland China's economic slowdown. Hong Kong saw a 1.1% year-on-year increase in total retail sales of consumer goods from January to August, while jewellery, watches, clocks, and valuable gifts saw an 11.9% increase in August compared to the same period last year. Hong Kong's visitor arrivals hit a post-pandemic monthly high of 5.46 million in August, with mainland Chinese arrivals up 6.37% from the same period last year. King Fook plans to operate the new premises as a single-brand watch boutique.",
  "summary": "King Fook Jewellery Group’s decision to lease a 550 square metre (about 5,920 square feet) retail space at Pacific Place Phase II in Admiralty signals confidence in Hong Kong’s retail market, despite slowing demand for luxury goods, analysts said. The six-year lease for the shop in Hong Kong’s prime business district carries total base rent of about HK$268.5 million (US$34.2 million), or about…",
  "key_points": [
    "King Fook leases 550 sqm space at Admiralty district for US$34.2M",
    "Six-year lease starts Feb 2028 with HK$3.73M monthly rent",
    "Analysts see investment as confidence in Hong Kong retail market"
  ],
  "editors_take": "Expanding into a premium Admiralty location signals a strategic bet on recovering visitor numbers despite the significant financial risks posed by a global slowdown in luxury goods demand.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}