HKRetail sales in Hong Kong increased by over 10% year-on-year in the first five months of 2026, yet many shops continue to close due to financial difficulties. Tenants report struggling with declining revenues, attributing this to intense competition and falling prices, which have forced them to seek rent reductions of up to 50%. Landlords, however, believe the market is improving and are offering smaller rent cuts, sometimes increasing rents in certain areas. Michael Leung, a restaurant owner and chairman of the Association for Hong Kong Catering Services Management, described the operating environment as poor, noting that foot traffic has dropped significantly and that over 500,000 people leave Hong Kong for the mainland during long holidays. His monthly expenses include HK$1.6 million in rent and other costs, and he argues that a 20–30% rent reduction is essential for survival. Edward Chan, founder of German Pool, highlighted the impact of online sales on physical stores and mentioned ongoing negotiations for rent reductions.
Bias read (Center): The article presents both tenant and landlord perspectives without overtly favoring either side. It includes direct quotes from representatives of both groups and does not employ biased language or selective sourcing. The framing remains neutral, focusing on contrasting viewpoints rather than taking
