How "Dead" is Hong Kong Now? Malls Are Empty, Bridge Tunnels Full of Unemployed, What Happened?

It's full. In the second half of the night, the chairs are all occupied. There's no more space left. Can you imagine? A short 200 meter tunnel in Hong Kong has become a shelter for countless workers. This is what it's like for the homeless on the streets of Hong Kong. One table, one tent, one sofa, one suitcase. What's beside the bed is probably all their belongings. This tunnel is about 200 meters long, filled with people sleeping inside. Life in Hong Kong is really stressful. Many people have probably been sleeping in this tunnel for years. Right next to the sofa, there's even a little fence to block it off. And beside the bed, there is a coffee table with a bible on it. Despite so many people sleeping on the streets, I have to say this spot is surprisingly well maintained. With the economic downturn across various industries in Hong Kong, particularly after the real estate bubble burst, many companies have had to lay off employees, and the unemployment rate has surged. Many jobless individuals are forced to live on the streets by the high cost of living. According to data released by the Hong Kong Census and Statistics Department on June 17, the overall unemployment rate has risen to 3.5%, a new high since December 2022. This reflects the tightening labor market, in particular, the unemployment rate in industries such as construction, retail, accommodation, and food services has reached 4.2%, showing how these traditional services sectors are the hardest hit by economic transformation and shrinking consumption. Of particular concern is the youth unemployment rate, which has risen to 6.8%, highlighting the greater pressure faced by young people in the job market. Some social media users on X platform have lamented, I've been seeing so much about unemployment layoffs and business closures in Hong Kong recently. Some even predicted that Hong Kong's economy will face a decade of recession. Oh no, at least 5 or 6 million are gone. Back then, hundreds of thousands of property owners were fighting to buy these shops here in Hong Kong. They paid tens of thousands per square meter just to get in. Now all that money is gone, down the drain. When you look around, it's all in this dreadful state. They can't rent them out. They can't sell them. And today's a weekend and there's not even a single soul around. So seriously, everyone, don't come to Hong Kong to buy commercial properties anymore. 10 years ago, everyone was fighting to come to Hong Kong and now 10 years later, those who needed to leave have left. Just look at what used to be a luxury paradise. Now, Guangdong Road in Hong Kong has turned into this. This whole street is so big and there's no one here even in broad daylight. 70% of the shops can't hang on anymore and there's barely anything left. Now the few that are still operating, you can see that building over there is up for sale and this place is also renting out spaces. I have 3 shops but I can't hang on either. In less than a year, I've lost close to 3 million Hong Kong dollars and I still haven't gotten the In this situation, I really don't know what to do anymore. Investing in commercial properties in Hong Kong has long been seen as a stable and high return investment, attracting significant capital inflow from mainland China. However, in recent years, the retail property market in Hong Kong has experienced a dramatic rollercoaster ride. Rent for commercial properties has dropped by 60-70% from the high points in 2019. This decline signals the end of Hong Kong's era of land hoarding for wealth. The increasingly common phenomenon of unsellable and unrentable shops has exaggerated the sense of despair among property owners, many of whom describe themselves as harvested leeks, reflecting the collapse of long-term confidence in Hong Kong real estate market. How dead is Tim Sha Tsui? Walking into the mall feels like an exploration. There are many empty shops there and the elevators are broken. It feels like time traveling back to the 80s. Hong Kong has become a dead city. Hello, behind me is one of the two-dish rice restaurants in Hong Kong. As you can see, two dishes cost 25 Hong Kong dollars. Even for three dishes, it's only 35 dollars. This is the ladies' market in Mong Kong. The situation of two-dish rice here reflects Hong Kong's purchasing power. If business here gets better, it indicates Hong Kong's economy is declining. That's why there are so many people coming here for two-dish rice. The so-called two-dish rice means two dishes plus a portion of rice. Of course I'm not making any money. If I were making money, would I still be doing this? I really can't make much money. The only money I earn is all through very hard work. Just hiring a chef costs 1,200 Hong Kong dollars a day. But how much can you earn in a day? The man in the video says, now it's after work hours. But as you can see, there are not many people are dining out. Even those eating out mostly buy lunch boxes. Do you know which businesses are doing the best now? Restaurants selling steamed rice, where you can get a lunch box for just over 20 Hong Kong dollars. Pork chop rice, meat patty rice. On X, a user posted a shop on Guangdong Road has been vacant for six months. Rent dropped from 200,000 Hong Kong dollars to 120,000 Hong Kong dollars. But no one is renting it. The bank loans are suffocating. Another user shared their frustration. A shop on Guangdong Road has been vacant for nine months. After a 30% price cut, still no one has taken it. It feels like being trapped. A commenter noted, a shop bought 10 years ago for 20 million Hong Kong dollars is now worth less than 10 million. Recently, a video filmed by a mainland tourist showed rows of closed or transferred stores along the streets, highlighting the prevailing desolation. The current situation in Hong Kong is truly tragic. We're seeing shop after shop closing down. Many business owners say they've never seen anything like this in 34 years. The reality in Hong Kong now is that all the properties and storefronts are shut. I remember when I came here in 2018, this place was full of people. Now the streets are lined with storefronts for lease. I keep taking pictures. What used to be a vibrant display of goods is now mostly limited supply. This one meal costs 75 Hong Kong dollars. This damn Hong Kong price. Hong Kong's economy is contracting, with the price index steadily rising across housing, commercial rents, daily consumer goods and food. This, coupled with external uncertainties and political factors, has led many foreign enterprises to withdraw from the city, triggering a chain reaction of bankruptcies in some industries. In the first half of 2025, the number of small businesses closing in Hong Kong has increased, particularly in the retail, food service and logistics sectors. According to incomplete statistics from Hong Kong Economic Daily, by the end of June, over 290 shops in Hong Kong had closed or were about to close, covering industries like retail, food service, fitness and entertainment. No one dares to speak up, but Hong Kong is slowly becoming just like any other ordinary city in mainland China. Over the past few years, hundreds of thousands have left, and its global financial hub status has been taken up by Singapore. Hong Kong is currently facing a severe commercial downturn, with a significant increase in shop rental advertisements across various districts. This has created a sombre atmosphere for the once-bustling scene of Hong Kong's lively restaurants. As the neon lights along streets flicker out one by one like falling dominoes, the unique vibrancy and warmth that once characterized the city seems to be slowly fading away. The sense of security that Hong Kong once offered its residents has also diminished under the impact of this wave of business closure. Look at these stores, so many have closed, nearly all of them. A large number of shops in Hong Kong are shutting down. You see, they're all closed, these shops. Video shot by local residents and tourists in Hong Kong shows that rows of shops along certain streets have closed or are up for transfer. A local resident stated the restaurant industry is one that suffers the most, with many traditional long-established businesses among those affected. On the 27th of March, 2026, the latest transaction for a commercial property in Hong Kong took place at Shop A, G, F, 2 Blenheim Avenue, Tsim Sha Tsui. The shop has a building area of 23 square meters, the property is 42 years old, and the tenant is a Vietnamese bakery, paying a monthly rent of $31,000. The original owner bought it in 2015 for 20 million HKD, and it was recently sold for only 7.8 million HKD, located in Tsim Sha Tsui, near Bar Street and K11. It feels like Hong Kong is desolate now, so different from the Hong Kong I used to live in. Amidst the ongoing pressure on essential industries like dining, the genuine anxiety of many Hong Kong residents is clear. The worst news for Hong Kong has come out. First, it has lost its independent custom status and free trade rights. Then, it no longer has the freedom to exchange the Hong Kong dollar and the US dollar. Simply put, from now on, Hong Kong will be just like any other city in mainland China, with no special status or treatment. That's why in recent years, both people and money have been flowing out to Singapore. Li Ka-shing's eldest son also said that Hong Kongers people have been struggling these past few years, going through one round of hardships after another. The Pearl of the East, built over a century, no longer shines, and those Hong Kong stars better not start live-streaming and becoming internet celebrities in mainland China. That would really turn into a closed loop. My company in Hong Kong doesn't know what to do either. The advantages of re-exporting are gone. Among these, the food service industry saw the highest number of closures, with nearly 200 outlets accounting for almost 70%. Many of these closures include long-established businesses. For example, the 36-year-old Hong Kong-based group Superstar Chinese Cuisine announced on July 2 that its Moco branch in Mongkok would close, marking the end of the company's operations. The 30-year-old Federal Palace restaurant in Tuen Mun also suddenly closed in early July. The 33-year-old congee chain Ocean Empire, which once had over 30 branches, announced in early May that it would shut down all of its stores. The last branch of the 44-year-old restaurant chain Daniel's Restaurant closed on May 29. Four Seasons Hot Pot, a Hong Kong-style hot pot restaurant founded in 1990, closed its doors at the end of May. These closures highlight the survival struggles of traditional retail and food service industries. Simon Wong Kar-wo, the chairman of the Hong Kong Federation of Restaurant and Related Trades, pointed out that as the economy continues to falter and more Hong Kong residents head to the mainland for shopping, the pressure on chain restaurants is mounting. He said, perhaps they believe the market outlook is uncertain and that's why they chose to end operations. Under the rules of the Chinese Communist Party, Hong Kong's former glory as an Asian financial hub is now a distant memory. With the economy in a severe slump and the real estate market remaining weak, reports indicate that McDonald's, the U.S. fast food giant, plans to sell 23 of its locations in Hong Kong in stages, with a total estimated value of around HK$3 billion. On July 28, Hong Kong Economic Daily cited a source revealing that the first batch of eight locations up for sale, located in areas like Tsim Sha Tsui, Causeway Bay, Mong Kok and Kennedy Town, are all situated in high footfall central areas. The total market value of these properties is with a tender deadline set for September. McDonald's plans to release the remaining properties next year. The first sale will include eight stores, with the highest value property being the underground store and basement in Tsim Sha Tsui's Starlight. The area is nearly 15,000 square feet, with the basement rented by McDonald's and the ground floor leased to The total monthly rent is approximately HK$1.36 million and the property's market value is around HK$460 million. This move follows a failed auction in 2019 when the market valued these spaces at around HK$1 billion. With the market cooling over the past few years, the current value of these properties is expected to have dropped by more than half compared to McDonald's headquartered in Chicago stated that this sale is part of an ongoing strategy to optimize its real estate investment portfolio. The total value of McDonald's global real estate is reported to exceed US$40 billion. Its founder Ray Kroc famously said, we are not technically in the food business, we are in the real estate business. Globally, McDonald's has only engaged in the mass sale of its properties in two other locations since its founding. The first was Japan during the 1990s amidst the country's economic recession. The second was Russia several years ago following the outbreak of the Russia-Ukraine war when US companies collectively exited the Russian market. Now, Hong Kong marks McDonald's third such move globally. Hong Kong's property prices and rents are the highest in Asia. Its location and significance are unique and vital to the mainland China. If we look solely at McDonald's withdrawal as an indicator, it suggests that nearly a century of real estate faith in Hong Kong is collapsing. Furthermore, McDonald's divestment may prompt other multinational companies to reassess their asset allocation in Hong Kong. Recently, an article published in AM730, a newspaper funded by Hong Kong's centerline property founder Xi Wenqing discusses the falling prices of commercial real estate. The article is about a commercial property transaction. The entire 19th floor of the central mansion owned by Henyep Group and related individuals was recently purchased by Chairman and Managing Director of Great Eagle Holdings Ltd, Lo Kha Sui and others for HK$218 million. The average price per square foot is HK$15,800, a significant drop of 70% compared to the peak seven years ago. It is important to note that No. 9, Queen's Road Central is located at the intersection of Ice House Street and Devo Road Central, right in the heart of Hong Kong's core commercial district. In 2018, Winland Group purchased the entire 34th floor for HK$530 million with an average price of HK$61,800 per square foot. This indicates that over the past seven years, the value of prime-grade office buildings in the core commercial area has dropped by 70%. Xi Wenqing has a deep insight into Hong Kong's real estate market. His article in AM730 reflects his pessimistic outlook on commercial real estate, advising a reduction in supply to prevent further price collapse, indicating his belief that the market needs to adjust proactively. A major bombshell has recently exploded in the real estate circle. Rumors have been spreading widely online that Li Ka-shing plans to sell his old residence at 79 Deepwater Bay Road in Hong Kong for HK$5 billion. Li Ka-shing's position in the business world is undeniable, and every move he makes can stir the markets in both Hong Kong and mainland China. What's even more significant is that he is now rushing to sell his family home, which carries years of family memories, at a price 23% lower than market value. This move has been interpreted by Hong Kong media as the ultimate signal of cutting off family roots. On X platform, some users have stated that this move symbolizes Li Ka-shing's complete withdrawal from Hong Kong, or his loss of confidence in Hong Kong's future. Some posts mention that the luxury home was purchased in 1965 for HK$650,000 and took eight years to build, equipped with bulletproof glass, explosion-proof steel doors, and private bodyguards ensuring high security. The sale is being interpreted as a resolute action. As the wealthiest Chinese businessman, why is Li Ka-shing in such a hurry to liquidate his assets? What hidden secrets lie behind this decision? Not only is the Li family selling their ancestral home in Hong Kong, but in late July, Li Ka-shing's Cheung Kong Holdings also sold 400 units in the Hong Kong Bay Area at a 50% discount. In May, Li's luxury residential project in Beijing was sold at a 30% discount, with prices dropping from HK$150,000 per square meter at the peak to HK$70,000 per square meter. In recent years, Li Ka-shing has been selling Hong Kong properties, including the sale of the centre in 2017, the Won Chuk Han project in 2020, 21 Borat Road in 2022, and low-priced residential properties like Coastline 2 and Blue Coast between 2023 and 2024. Li Ka-shing's behind-the-scenes moves are unmistakable. After years of asset adjustments, the proportion of Cheung Kong Holdings assets in mainland China has dropped from a peak of 75% to less than 5%. In contrast, Li has made massive bets on the UK, Europe, and Southeast Asia. The UK alone now accounts for 60% of Cheung Kong Holdings' assets, with investments spanning natural gas, electricity, and telecommunication networks. Additionally, Li is building logistics networks in Thailand, developing smart ports in Vietnam, and investing in biotechnology and hydrogen energy industries in Europe. In short, Li Ka-shing's intentions are clear – invest anywhere, but not in mainland China. He wants nothing to do with it. Li Ka-shing has even remarked in informal settings, Hong Kong will truly be yours from now on, with a tone of doomsday heroism and a sense of sorrow. This may hint at his concerns and resonation over Hong Kong's mainland-ization.