AdvertisementHong Kong propertyBusiness
Bargain sale, collapsed deal reflect Hong Kong’s struggling retail property market
2-MIN READ2-MIN Listen
Chris TsangPublished: 6:00pm, 4 Sep 2026
A foreclosure sale in Hong Kong’s Lan Kwai Fong area and a cancelled shop transaction in North Point reflect the impact of weak consumer spending on Hong Kong’s retail property market, which will remain under pressure through the end of the year, according to analysts.
The Lan Kwai Fong property, home of well-known bar Insomnia until it closed in 2024, recently changed hands for 60 per cent less than its value in a 2015 sale. Meanwhile, the deal for the large street shop on King’s Road in North Point abruptly fell through after two months.
The retail property market would continue to struggle through the end of the year because banks were unwilling to lend, while the future outlook depended on whether they were prepared to loosen the credit taps, said Edwin Lee, founder and CEO of Bridgeway Prime Shop Fund Management.
“There are still many foreclosed properties on the market, but the biggest issue is that banks are taking a very cautious stance on commercial real estate mortgages,” he said. “For large-scale transactions exceeding HK$50 million [US$6.4 million] – or even over HK$100 million – buyers are often required to pay all cash. Since very few buyers have the financial capacity to do so, owners are forced to offload properties at steep discounts.”
The former home of Insomnia, Shop A on the lower ground floor of Ho Lee Commercial Building at 38, 42, and 44 D’Aguilar Street, recently sold for HK$58.68 million, reflecting a price of about HK$18,178 per square foot, according to market sources.
Market records showed that the original owner bought the shop for HK$168 million via a corporate acquisition in 2015, at the peak of the retail property market. In early 2024, the owner listed the shop for sale with an asking price as high as HK$250 million.
Over the subsequent years, the property suffered a paper loss of more than HK$109 million, representing a decline of over 60 per cent.
AdvertisementSelect VoiceSelect Speed00:0000:001.00x