Hong Kong Luxury Mall Almost Empty As Chinese Spending Plunges

The mock-classical 1881 Heritage mall in Hong Kong’s Tsim Sha Tsui district is sitting mostly empty, as Chinese spending in the city slows down. The growing number of shuttered stores is adding to a deepening sense of malaise in the financial hub, where home prices are at an eight-year low and office vacancies are near a record high. Bloomberg's Shirley Zhao reports.

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[Fishpasta]

Hong Kong thrived by being the middle ground where the Chinese market could easily integrate with the Western market.
When you deliberately destroy that foundation don't be surprised when there are consequences.

[godzillamothra]

when HKers themselves cross to Shenzhen to shop, why would mainlanders go to HK to shop? The truth is, HK has lost the shopping heaven status long ago. It used to be that they rely on duty free on branded goods, but many countries have reduced the tariff on luxurious goods, including mainland.

[Nainara]

This is sort of interesting. Too bad they didn't dig deeper into the causes of the trend. Is it because of China's economic downturn, or is Hong Kong no longer attractive to mainland Chinese tourists?

[MMLL]

First off, the truth is the mall has been approved for redevelopment in year 2023 and construction work will begin in 2025, would you be surprised there are no shops at this stage?
Then, why are you describing the mall as mock-classical? The main structure of the site has been around for 130 years, why is it mocking anything?

[ClassicGolfSwings]

Good to know people are reducing consumption of overpriced luxury brands that are typically used to show social status.

[PresidentBob]

Hong Kong was never the same after 99 years lease is over.

[flyhighseeall]

You guys are still living in the 80s ? HK is no longer a tourist destination, the shopping paradise status is long gone. Why would mainlanders want to spend money in hk while they are not welcome there. Reap what you sow

[tofuyam]

The Chinese are touring the rest of the mainland these days

[cchu]

First, the vacancies in the malls and street where luxury brands once stood are gone mainly from the days of the protests and Covid from 2019 to 2022. For example, Wharf, Sun Hung Kai and New World refused to reduce rents and when the leases were up in those years, these landlords stood firm and didn’t reduce rents or offer any incentives. Much of the brands relocated, reduced number of shops, or just left the HK market entirely. LVMH, Prada, Valentino to name a few have gone to China instead. You can thank those landlords/developers for their greed, ignorance and their reluctance to reduce rents.

Secondly, the buying habits and shoppers have changed since Covid. More people shop online and people have become more thrifty shoppers.

Thirdly, mainlanders have become more patriotic because of US and Europeans sanctioning the hell out of China. The re-emergence and resiliency of Huawei from being sanctioned to now a great success story have inspired the nation to support and push the Made in China movement.

Last, the Chinese rich have been travelling to Japan to buy luxury goods because of the low JPY. Also to Dubai. HK has lost its appeal.

[TAL]

They should talk about American malls. They are all empty even for non luxury street stores.

[wildfire]

Hong Kong Luxury Mall Almost Empty As (Hong Kong people, not Chinese) Spending Plunges.
Always try to associate with Chinese with economy slow down or any disaster. How pathetic!

[zcvxs]

Sorry but has asia seen the Mall's in the u.s. ?
Mall's are abandoned and buildings are begging for cheap rent

[LogemannBilly]

kay, I’ve always scratched my head about the obsession around the kislux book totes and their practicality, but this one is adorable!! Congratulations

[jaker]

I think consumers in Asia are more savvy with their money. When the economy isn't doing well consumers there will spend less. In the West when the economy isn't doing well many people continue to spend on credit. There's a stronger credit card/borrowing culture.

[dimsumden]

Bloomberg should focus malls on their home turf, where I have seen many are in bad state and many stores have closed, even complete malls have shutdown.

[zuriyel]

Nice try Bloomberg, but people prefer to spend their money in the mainland, that goes for HK'ers as well. In fact, the number of HK'ers going to the mainland has increased significantly over the past couple of years. It's just being smart with your money.
Hong Kong is one of the more expensive places in China.

[sodazman]

Most people in the comments section have no idea. Hong Kongers are travelling to China to spend their money these days. They're getting much better quality and service in China. I would know because I live there. Chinese spending remains high, but they spend their money locally.

[evanh]

japan prices are more attractive due to the exchange rate now, hk is more expansive than mainland sometimes, and not that good service

[glfevw]

This mall has always been empty since opening…only few restaurants and places for instagram pics…

Somehow whenever Bloomberg reports Hong Kong and Singapore, it seems just picking on Hong Kong e.g. If HK gdp grows 1%, it will report as HK is at recession…while SG with 1%, it will be on the path of recovering…

Do some check please, CK asset just runs it…the land still owns by the HK govt…

[hakunadacunhaYT]

I'm curious whether this is mainland China shutting down HK's value and how are real estate prices faring in the rest of Hongkong.