Stingy tourists further dragged Hong Kong's sluggish luxury sector

It might not end the year with a bang.

The prime street shop leasing market remained subdued over Q3/2014 amid sluggish retail sales, especially in the luxury segment.

According to a research note from Savills, a number of international luxury retailers and retail groups have reported weaker sales growth over the third quarter of the year.

The shift in the profile of Chinese visitors (from overnight to same-day) and a fall-off in mainland spending on luxury items as a result of the anti-corruption drive and a slowing economy have compounded the slowdown in the luxury sector.

Further, increasing competition from neighbouring cities such as Seoul and Taipei, as trendy destinations for wealthy Chinese travellers, have contributed to the slowdown as well.