Retail sales jumped 11.8% as tourism and events drive recovery.
Hong Kong’s retail market continued its recovery in early 2026, supported by strong tourism and major events, according to Knight Frank.
Total retail sales rose 11.8% year-on-year to HK$72.4 billion in the first two months of the year. Discretionary spending led growth, with sales of jewellery, watches and clocks, and valuable gifts surging 27.8% y-o-y, reflecting a rebound in high-value consumption.
Tourism remained a key driver, with visitor arrivals increasing 18.4% y-o-y to 9.95 million between January and February. Mainland Chinese visitors accounted for about 7.89 million arrivals, or 79% of the total, boosted by Chinese New Year festivities and major events such as the Lunar New Year Night Parade and fireworks display.
Knight Frank highlighted the growing role of education-related demand in the retail property market. Rising numbers of families relocating under talent admission schemes have driven demand for school space. Recent transactions include Harrow International School Hong Kong’s acquisition of a four-storey retail property in Tuen Mun for HK$122 million, and Stamford American School’s lease of more than 95,000 sq ft of retail podium space at Imperial Cullinan.
Cultural events are also increasingly supporting retail performance. Flagship events such as Art Basel Hong Kong and Art Central have boosted footfall and spending, reinforcing the integration of retail, lifestyle and experiential offerings in prime locations.
Looking ahead, Knight Frank expects the retail market to remain stable through 2026, underpinned by a strong pipeline of events, including concerts and the Hong Kong Rugby Sevens.
Demand for well-located retail space in core districts such as Central, Tsim Sha Tsui, Causeway Bay and Mong Kok is expected to remain firm, with rents in prime shopping centres and street-front locations continuing to trend upwards.