Hong Kong’s shopping mall sector is showing signs of steady recovery as leasing activity improves and a range of new stores and events attract shoppers, according to Hang Lung Properties executives.

Speaking at a recent industry event, Weber Lo Wai-pak, CEO of Hang Lung Properties, highlighted that the company’s shopping centres reported single-digit sales growth in July, reflecting a gradual recovery in the retail market. He projected a stronger performance in the fourth quarter, driven by a pipeline of new store openings and renovations underway at key properties.

“Hong Kong shopping malls need to focus on getting the fundamentals right and offering the public new products and activities,” Lo said. He emphasized that engaging events are crucial to maintaining foot traffic amid competition from cross-border shopping trips taken by many local consumers.

Leasing conditions at Hang Lung’s properties in Causeway Bay, a major retail hub, have shown steady improvement in recent months. Lo noted that several shops are currently being refurbished, contributing to a temporary waiting period before they reopen. He expressed optimism that the sector’s performance would continue to strengthen over the next 18 months.

Adriel Chan, chair of Hang Lung Properties, underscored merchants’ ongoing investments in Hong Kong as a sign of confidence in the city’s retail market. “If Hong Kong’s shopping malls can be made more attractive, comfortable and convenient, I believe Hong Kong consumers will continue to shop locally,” Chan said.

Hang Lung Properties manages large-scale retail complexes, including Fashion Walk and Hang Lung Centre in Causeway Bay. The latter recently underwent notable changes following the departure of H&M, which closed its expansive store there in late February after its lease expired. The vacated ground-floor space has since been leased to Lung Fung Group, a local pharmacy chain, while the first and second floors are now occupied by the mainland women’s fashion brand W. Management. Plans are underway to introduce a major home furnishings brand to the Causeway Bay portfolio, alongside new restaurants on the upper floors.

Across Victoria Harbour in Kowloon Bay, Hang Lung marked the opening of the Amoy Footbridge, a community infrastructure project fully funded and constructed by the company. The bridge aims to support the ongoing development of the area, where Hang Lung holds a majority stake in the adjacent residential complex Amoy Gardens.

Since the footbridge opened, Amoy Plaza—a retail centre linked to the development—has experienced single-digit percentage growth in foot traffic. Lo noted that many new food and beverage outlets have launched following the bridge’s completion, with over 20 new tenants filling the second-floor space alone.

These developments reflect Hang Lung’s strategy of integrating retail spaces with community infrastructure and enhancing the shopping experience to sustain local consumer engagement in a competitive market environment.