HK retail sales up 11.8% as durable goods and jewellery drive growth

Growth extended to a tenth straight month.

Retail sales in Hong Kong rose 11.8% year-on-year in the first two months of 2026, marking a tenth straight month of expansion, according to Colliers Q1 2026 Market Report.

Growth was primarily driven by robust demand for electronics and consumer durable goods, which surged 32.4% compared to the same period last year.

The growth was attributed to improving residential transaction activity, which has supported purchases of home-related products. Meanwhile, the jewellery and watches segment also recorded solid gains, rising 27.8% year-on-year, buoyed by elevated gold prices.

Leasing activity in the first quarter remained relatively subdued, reflecting seasonal trends following the extended holiday period. High-street rents showed stability overall, with modest growth of 1.6% year-on-year.

Despite strong sales momentum, retailers, particularly goldsmiths, are adopting a cautious expansion strategy. Industry players are prioritising prime locations over aggressive network growth, highlighting a more disciplined approach amid evolving market conditions.

Financial institutions continue to be active tenants, whilst souvenir-focused retailers, including specialty confectionery and gift shops, are gradually expanding to capitalise on recovering tourist demand.

The report noted that retail units sized between 1,500 and 2,000 square feet are likely to remain the most sought-after in the near term.

Looking ahead, regulatory changes may further shape the retail landscape. The upcoming Food Business (Amendment) Regulation 2026, set to take effect in May, will allow eligible licensed restaurants to apply for permission to admit dogs.

Landlords of retail and mixed-use developments are expected to leverage this change to introduce more pet-friendly environments, enhancing the overall customer experience and diversifying tenant mixes.