Prada to Open 8,000 sq ft Store in Hong Kong

The two-storey outlet will be the Italian brand’s first major store in HK since it closed its flagship store in 2020

Prada is renting an 8,000 sq ft store in K11 Musea, a harbourfront luxury shopping centre by New World Development, according to reports. Construction work for the two-floor store will begin soon and it is expected to open early next year, thereby giving a boost to the commercial real estate sector of the city. Rent is likely to be partly based on store sales, sources said.

Quick Look

• With a monthly rent of HK$9 million (US$1.2 million), Prada’s flagship store, located in Causeway Bay, was one of the city’s most expensive retail leases
• Global luxury brands are increasingly making a return to Hong Kong’s core business districts
• Despite social unrest and slowing economy, spending remains strong among the wealthy classes in the region 

This will be Prada’s first major new store in Hong Kong in years. The group shut its flagship in Causeway Bay in 2020, ending one of the city’s most expensive retail leases with a monthly rent of HK$9 million (US$1.2 million). The Italian brand, which at its peak had nine outlets in the city, now operates six, according to its website.

Global luxury brands are increasingly returning to Hong Kong’s core business districts, attracted by property prices that are much lower than pre-pandemic levels. In Tsim Sha Tsui, where Musea is located, average rent for stores at major shopping streets is still 45% below the 2019 level, according to global real estate consultancy firm Cushman & Wakefield. 

The city’s high-end shopping centres have accelerated a luxury push to add appeal to the moneyed classes, whose spending remains strong despite years of social unrest and a slowing economy. New World, led by executive vice-chairman Adrian Cheng Chi-kong, teamed up with Louis Vuitton to host the brand’s first ever fashion show in Hong Kong last year, with the event staged just outside Musea.

Hong Kong’s wealthy residents have provided some stability for global brands against a sales slump in their key market of mainland China. The shopping hub also remains one of the most popular destinations for mainland tourists. Hongkong Land Holdings and tenants including Hermes International and Louis Vuitton will invest US$1 billion to upgrade the developer’s flagship retail space Landmark in Central. Hysan Development is also revamping its Lee Gardens, a group of luxury malls in Causeway Bay, with tenants including Hermes and Chanel expanding their stores.