Hot property: Big banks, fashion stores seek ‘cheaper’, eye-catching Hong Kong retail

From big banks to fashion brands, tenants are taking advantage of potential lower rents for retail space in Hong Kong’s prime areas as they utilise eye-catching locations to boost visibility towards customers, according to agents.

HSBC is unveiling its first flagship branch at the Capitol Centre, which was previously occupied by fashion retailers such as Chanel, Victoria’s Secret and Forever 21, as the bank prepares to close two branches in one of the city’s top shopping areas, Causeway Bay.

The bank’s new Causeway Bay flagship branch and Premier centre will open on October 20, as its existing Premier centre at the Causeway Bay Plaza 2 on Lockhart Road, and the nearby Park Lane branch on Gloucester Road will be closed at the end of business on October 17 “due to lease expiry”, a spokesman said.

The spokesman, who declined to share more leasing details by citing a confidentiality agreement, added that renovation was in progress for the new location in Capitol Centre.

The 161-year-old bank, which established its operation in Hong Kong in 1865, agreed to pay HK$4 million (US$510,200) a month for the space – significantly lower than the rates paid by previous tenants, according to market sources.