Hongkong Land, a major luxury real estate developer in Hong Kong, has revealed plans to invest more than $1 billion in revamping its flagship Landmark shopping mall project.
Hongkong Land said that Landmark, a luxury destination located in Hong Kong’s Central district, will be transformed into an “ultra-luxury destination of tomorrow” with 10 multistory storefronts.
Ten of Hongkong Land’s top tenants — including Cartier, Chanel, Dior, Hermès, Louis Vuitton, Prada, Saint Laurent, Sotheby’s, Tiffany & Co. and Van Cleef & Arpels — will contribute a total of $600 million to the renovation. That amount exceeds the more than $400 million being invested by the landlord.
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The 10 tenants’ retail space will more than double to more than 226,000 square feet to include haute couture ateliers, private dining concepts, bespoke concierge services, and two-story salons for their VIP clients, according to the developer. Several flagships will become some brand’s largest in the world.
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“Notably, four brands will have the opportunity to debut al fresco terraces, allowing their valued clientele to enjoy a glass of Champagne while taking in the beauty and buzz of tomorrow’s Central,” Hongkong Land said in a statement.
Unfolding in phases over the next three years, Sotheby’s 24,000-square-foot exhibition and retail space will be the first to open in July, followed by the reopening of The Landmark Mandarin Oriental hotel and the opening of two brand stores in 2025.
“Central has been the barometer of the city’s transformations for over a century, so developing Landmark marks an important chapter that will define the future of luxury experiences in Hong Kong and the rest of the world,” said Alvin Kong, executive director at Hongkong Land.
“This strategic transformation is a pivotal milestone exemplifying our Global Central vision — to create world-class luxury lifestyle and retail destinations that serve as gravitational hubs for the world’s most prestigious brands and discerning consumers,” Kong added.
The ambitious plan aims to help Landmark retain its loyal customer base, which represents 80 percent of total sales. In 2023, these VIPs spent on average 1 million Hong Kong dollars, or $128,000, with purchases at the luxury mall every other week. Landmark’s top 70 customers spent a total of 1 billion Hong Kong dollars, or $128 million, last year.
The upgrade is the most ambitious project for the luxury destination since it opened 44 years ago.
Despite macro challenges that gave the price advantage to markets like Japan, the Hong Kong luxury market is set to achieve a compound annual growth rate of 4.5 percent from 2023 to 2030, reaching 125.8 billion Hong Kong dollars, or $16 billion, by 2030, according to a report by PWC Hong Kong in April. The report said that the growth will be powered the leather goods, watches and jewelry categories.