Hong Kong’s retail market is undergoing structural transformation as e-commerce and cross-border spending reshape consumer behavior, according to Knight Frank. Online sales are projected to reach HK$35 billion by end-2025, up from HK$20.6 billion in 2020. Prime street shop rents are forecast to rise 5-10% in 2026, fueled by recovering luxury sales and new brands seeking high-visibility locations. Conversely, neighborhood center rents may fall up to 5%, impacted by e-commerce growth. Overseas credit card spending accounted for 34.1% in the first three quarters of 2025, reflecting increased travel and online shopping comfort.