Spanish fast-fashion retailer Mango has secured a 19,000-square-foot retail space in Hong Kong’s Central district, taking advantage of significantly reduced rent prices. The two-floor store is located in the Asia Standard Tower on Queen’s Road Central, a prime retail area that has seen its tenant occupancy drop since 2020 when British brand Topshop vacated the premises.
Significant rent reduction
The new rent for Mango’s store is reported to be around $154,000 per month, which is about 20% lower than pre-COVID levels and 60% lower than the peak rent for the property, which was recorded in 2014. This substantial reduction reflects the broader trend of declining retail rents in Hong Kong, once considered the world’s most expensive real estate market.
Renewed confidence in Hong Kong’s retail market
Mango, which currently operates only one other store in Hong Kong, had previously downsized its presence in the city. However, the new lease signals a renewed confidence among global brands in Hong Kong’s retail sector, driven by more affordable rents. The store’s location is highly strategic, situated in one of Central’s busiest neighborhoods and close to trendy brands like Lululemon and the popular Central-Mid-Levels Escalator, a major tourist attraction.
Other brands follow suit
Mango’s move follows similar decisions by other luxury and fashion brands. New World Development recently leased an 8,000-square-foot store in its upscale K11 Musea mall to Prada, and Hongkong Land Holdings is collaborating with tenants such as Hermès and Louis Vuitton to invest $1 billion in upgrading the Landmark, a premium retail space in Central. Additionally, US-listed sneaker brand On Holding AG has opened its first-ever store in Hong Kong, while Hysan Development Co. is revamping its Lee Gardens luxury malls in Causeway Bay, with expansions by brands including Hermès, Chanel, and Dior.
