Prince Jewellery & Watch has shut down its flagship store on Russell Street in Causeway Bay after more than two decades, following a steep rent increase that made the location unaffordable.
The iconic jeweller closed its 1,800-square-foot ground-floor store at 58 Russell Street and another outlet at 69 Percival Street. The decision came after the landlord doubled the monthly rent from HK$1.1 million to around HK$2 million (US$257,800), according to founder and CEO Jimmy Tang Kui-ming, who spoke to the media on Tuesday.
Clover Land Investment, the property owner, sought to lease both spaces – the ground floor of 69 Percival Street and the entirety of 58 Russell Street – for a combined monthly rent of HK$2.21 million. According to public records, the landlord is connected to the family of Maria Tam Wai-chu, a former member of Hong Kong’s Executive Council.
Prince Jewellery had been a long-standing tenant in the area, once operating three shops in Causeway Bay. The company first leased the spaces in 2004 and, at the market’s peak in 2014, paid up to HK$3 million per month, according to local property agents.
However, Hong Kong’s retail sector has struggled in recent years. The 2019 social unrest and the Covid-19 pandemic caused a sharp decline in tourist numbers and consumer spending. Retail rents have also dropped significantly.
By the end of 2024, high street shop rents were down nearly 40% compared to 2019 and had fallen by 71.5% from their peak in 2014, according to real estate firm JLL.
Other high-end brands like Burberry and Kiehl’s have also exited Causeway Bay. In their place, more affordable tenants such as cosmetic retailers, mobile phone accessory stores, and money changers have moved in.
One recent tenant is Yu Shing, a local pharmacy, which has taken over the former La Perla location at 22-24 Russell Street. The pharmacy is expected to pay about HK$1 million per month in rent, according to anonymous property agents. No other lease details have been disclosed.
La Perla, an Italian luxury lingerie brand, had signed a long-term lease for HK$7.5 million per month in 2015 but left the four-storey building in September 2020 during the pandemic. Since then, landlord Emperor International has rented out the space temporarily to pop-up shops and short-term tenants.
Retail sales in Hong Kong remain weak. February marked the 12th consecutive month of decline, with total sales falling 13% year-on-year to HK$29.4 billion. In the first two months of 2025, sales dropped 7.8% compared to the same period last year. Many Hongkongers are now spending more of their discretionary income across the border in Shenzhen and other nearby cities.
However, the outflow of residents has slightly decreased. In early 2025, the ratio of resident departures to tourist arrivals was 2.1 to 1, compared to 2.3 to 1 in 2024, JLL reported.
Despite the challenges, some businesses continue to invest in the area. Chinese brokerage Futu Securities recently rented a ground-floor shop at 38 Russell Street. Property agents believe the company is paying about HK$1.2 million per month for the space in Soundwill Plaza, previously occupied by Transformers: The Ark restaurant, which closed in February.
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