McDonald’s has sold 11 of its 23 Hong Kong retail properties for over HK$900 million amid a broader downturn in the city's commercial real estate market.

One year after initiating a plan to sell its self-owned Hong Kong shops, McDonald’s has successfully offloaded nearly half of its portfolio. Despite a significant slump in the city’s retail property sector, the fast-food chain has sold 11 of its 23 properties for a total exceeding HK$900 million.

Sales Progress and Market Context

The disposal plan, managed by JLL, began in July of last year. According to calculations, the company sold five properties in 2023 and six properties worth HK$607 million so far this year. The initial portfolio was valued at approximately HK$3 billion, or US$382 million. While McDonald’s has managed to realize gains over its historical purchase costs, the broader Hong Kong retail market is experiencing its weakest period in decades. Analysts note that shop values remain more than 50 percent below pre-pandemic highs, with many other properties selling at prices 30 percent lower than peak valuations.

Broader Retail Property Trends

Market data from Centaline Commercial indicates that the retail property sector remains stagnant, with only 379 shop transactions completed in the first half of the year. This figure shows little change compared to the same period in the previous year, as major landlords and veteran investors continue to divest from the market.