Futu might be paying HK$1.2 million (US$154,000) each month for rent, which is quite inexpensive relative to theHK$8.6 millionmonthly rent that Burberry was charged back in 2018.

According to industry insiders, Futu Securities International (Hong Kong) has acquired a premium retail location in Hong Kong’sCauseway Bay. This move comes as one of mainland China’s quickest-expanding online brokerages intensifies its presence in what is recognized as one of the globe’s priciest real estate markets.
retail
regions to ready for a surge in the stock market.

Futu will take over the ground-floor area in Soundwill Plaza on Russell Street, which has been empty since February.
Transformers
The Ark restaurant. According to agent estimations, the broker might be spending around HK$1.2 million (US$154,000) each month to establish an additional physical location for their online venture. Futu chose not to comment on this matter.

The rent for the 4,540-square-foot (421.8 square meters) area spread across three levels — which is presently undergoing refurbishment — has increased by one-fifth following the departure of iFree, the owner of the Transformers restaurant, according to sources from real estate agencies.

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Nevertheless, the rent remains approximately one-eighth of theHK$8.6 millionmonthly fee thatBurberrypaid per month toSoundwillHoldingsin 2015duringHong Kong’spre-pandemicroretailboom. TheBritishfashionbrandterminateditsleaseinthearrivalofthe2021pandemicafteraslowdownthatstartedwithanti-governmentshouldsin2019followedbytravelrestrictions.BringersonrestaurantmovedintothespacethatwasformerlyoccupiedbyBurberry.

Martin Wong, who serves as the senior director and head of research and consultancy for Greater China at Knight Frank, stated, “We’ve observed an increase in leasing activity; however, this hasn’t led to increased rent prices.”

Russell Street is located within one of Hong Kong’s primary shopping areas. As late as 2018, shops lining this 250-meter-long street typically paid an average yearly rental fee of $2,671 per square foot. This figure positioned Russell Street as the most expensive retail area globally at the time, exceeding even notable locations such as the Champs-Elysées in Paris, Omotesando in Tokyo, and Fifth Avenue in New York City, according to data from Cushman & Wakefield.

After six years and amid a pandemic-induced economic downturn, the monthly rent per square foot on that street dropped by 46% to $1,430. This was lower than the rate in Tsim Sha Tsui on the Kowloon Peninsula, which stood at $1,607 per square foot.

Futu
Founded in Hong Kong 12 years ago by Li Hua, this business has been rapidly expanding with new outlets in Causeway Bay, Mong Kok, Tsuen Wan, Tsim Sha Tsui, and its headquarters in Admiralty. This strategic move aims to boost its physical footprint and draw more customers. The current location of their store near Lee Garden Road in Causeway Bay is just steps away from Russell Street.

This approach highlights how certain brokers aim to distinguish themselves from the faceless nature of online rivalry, where platforms offering commission-free trades and automated advisory bots are attracting individual investors.

This growth coincides with enhanced performance in the Hong Kong stock market, where the Hang Seng Index has outpaced global peers with an impressive 16 percent increase this year. Analysts anticipate this upward trend will persist due to stabilizing economic conditions in Mainland China, along with over 100 firms poised for upcoming initial public offerings in the region.

Some
leasing
Momentum has been noted in the market. From December to February, some of the top ten biggest leasing transactions in the city involved brokerage company Longbridge, which took up an 8,500 square foot area on Nathan Road in Tsim Sha Tsui at a monthly rate of HK$1 million. Additionally, Citibank extended its lease for a 7,585 square foot location on Hennessy Road in Causeway Bay, agreeing to pay HK$850,000 each month.

Among the top 10 biggest leasing deals was also TruffleBakery’s 3,133 square feet location at The Hedon in Causeway Bay. This spot, leased from a Tokyo-based bakery, comes with a monthly rental fee of HK$300,000.

In February, Hong Kong experienced a decline in retail sales for the 12 consecutive months, with a drop of 13% to HK$29.4 billion compared to the previous year’s figures, as reported by the most recent statistics released by the Census and Statistics Department.

According to the latest report by Jefferies analysts Chen Shujin and Sam Wong, Hong Kong’s retail sales may decrease by a low single-digit percentage this year relative to 2024. As reported by UBS, their 2025 retail forecast has been adjusted to flat, up from a previous prediction of a 5 percent drop, due to a reduction in cross-border shopping trips by local residents to Shenzhen.

“Retail sales in Hong Kong started with the highest baseline in January-February 2024, and from April onward, this base effect is expected to become more favorable,” according to Chen and Wong.

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