Hong Kong’s first-store appeal grows as more Japanese, South Korean and Thai brands arrive

Japanese, South Korean and Thai brands have increased their share of new entrants in Hong Kong’s retail property market by 7 percentage points to more than one-third in the first nine months of 2026, while the demand for shops from mainland Chinese brands has slipped, according to Cushman & Wakefield.

A slew of new brands helped lift the combined share of Japanese, South Korean and Thai brands to a three-year high, according to Cushman, which said it expected the trend to continue.

This year, Japanese fashion brand Cullni opened an outlet in Wan Chai, while second-hand goods retailer Ragtag took space in Hysan Place in Causeway Bay.

South Korean footwear brand Khiho entered Hong Kong through a store at K11 Musea in Tsim Sha Tsui.

Thai brands also launched outlets, with woven-bag seller Sugar Monday opening at Telford Plaza in Kowloon Bay and gelato retailer Blendies choosing K11 Art Mall in Tsim Sha Tsui for its first overseas location.

Together with other brands from the three markets, they accounted for 36 per cent of newcomers to Hong Kong this year through September, up from 29 per cent in 2025, Cushman said.

Mainland Chinese brands made up 36 per cent of newcomers to Hong Kong in the first nine months of this year, down from 38 per cent in 2025, while other markets accounted for the remaining 28 per cent.

“We believe the market is now entering a period in which many overseas brands are testing and refining their business models to better suit local demand,” said John Siu, managing director for Hong Kong at Cushman.

“Expansion activity among mainland Chinese brands remains ongoing, although the pace has moderated compared with a year ago.”

Hong Kong’s retail sales rose by 8.5 per cent year on year in the first eight months of 2026, according to the latest data from the Census and Statistics Department.

Visitor arrivals during the same period increased 11 per cent year on year, fuelled by an influx of mainland Chinese and long-haul international tourists, according to the Hong Kong Tourism Board.

“Supported by the recovery in regional tourism, Hong Kong offers brands a strategic platform to enhance their visibility among both local consumers and tourists, while serving as a launch pad for expansion into Greater China and other Asian markets,” Siu said.

The recovery has also been aided by lower occupancy costs. High-street retail rents across the four core shopping districts of Causeway Bay, Central, Mong Kok and Tsim Sha Tsui were about 50 per cent lower than their 2019 peak levels, Cushman said.

Entrepreneur Jennifer Kim is one of those expanding in Hong Kong. The South Korean national has added a new location for Seoul Recipe – her deli, takeaway and dining outlet serving healthy and affordable Korean cuisine.

The new branch, which held its soft opening last week, is located at Champion Tower on Garden Road in Central. The outlet had eight tables, which could accommodate a maximum of 16 diners, and measured about 800 square feet (74 square metres), Kim said in an interview.

“Our food is affordable and its quality is very good,” she said. “I realised that in Central, it’s difficult to find a good meal that would only cost you HK$100 [US$12.75], and that’s the market we are serving.”

Kim said Hong Kong’s food and beverage sector remained challenging as residents continued to travel to Shenzhen for dining and shopping, attracted by lower prices, but added that her catering business was performing well.

“It’s tough … but we also know that Hongkongers and tourists here need at least one decent meal,” she said. “That’s usually lunch and, for many [people], going to Shenzhen for lunch is not possible.”

More locations would help introduce Seoul Recipe’s food to a wider customer base, which influenced the decision to lease a prime space in Central, Kim said.

Founded in 2017, the Seoul Recipe group is a Hong-Kong based Korean food importer, manufacturer and distributor. In addition to its two deli outlets, the group operates Danji, a casual Korean restaurant in Wan Chai, as well as food-delivery and catering services for private and corporate events.

Cushman forecast that high-street retail rents would post low single-digit annual growth across districts this year, while rents in the food and beverage sector would remain under pressure.

So far this year, retail rents in Causeway Bay, Central and Mong Kok had risen between 1.6 per cent and 1.9 per cent, while rents in Tsim Sha Tsui had declined by 3.2 per cent, according to Cushman.