LCQ11: Leasing and operation situation of markets
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Question:
It is learnt that quite a number of operators of public market stalls providing daily food and necessities for members of the public are facing the pressure of rent increases. Regarding the leasing and operation situation of shops in public markets under the Hong Kong Housing Authority (HA) and the Food and Environmental Hygiene Department (FEHD), will the Government inform this Council:
(1) of the respective numbers of stalls, occupancy rates of stalls and categories of let-out stalls, as well as the respective numbers and rates of vacant stalls, in the various markets under the HA and the FEHD in each of the past three years;
(2) of the rental adjustment arrangements for the various markets under the HA and the FEHD in each of the past three years;
(3) as there are views that tenants of markets under the HA and the FEHD are currently facing a very difficult operating environment, whether the Government has considered providing financial support measures, such as rent concessions, for such tenants; if so, of the details; if not, the reasons for that;
(4) whether the FEHD has considered making good use of vacant stalls in the markets under its purview by allowing online shops selling fresh and frozen food to provide self-pickup smart lockers, so that members of the public may collect their purchased items at markets outside working hours, thereby stimulating footfall in the markets; if so, of the details; if not, the reasons for that; and
(5) given that the HA has implemented the Well Being·Start-Up programme to offer shop premises in shopping centres under its purview rent-free to young people aged 35 or below for start-up purposes, whether the FEHD has considered, by drawing reference from such programme, providing vacant "non-food" stalls rent-free as start-up points for young people who wish to start their businesses; if so, of the details; if not, the reasons for that?
Reply:
President,
The Food and Environmental Hygiene Department (FEHD) is currently responsible for managing 95 public markets under its purview. In view of evolving consumption patterns of the general public and demand for public markets, the FEHD has, in recent years, implemented various measures to enhance the operating environmental and management of public markets.
Separately, the Hong Kong Housing Authority (HKHA) provides, in addition to affordable rental housing for low-income families with housing needs, ancillary facilities such as markets, as appropriate, to meet residents' daily needs. At present, there are a total of 33 markets under the HKHA's purview, offering residents with appropriate shopping options through flexible leasing arrangements and ongoing review of the trade mix.
In consultation with the Housing Department, the reply to the various parts of the question raised by the Hon Joephy Chan is as follows:
(1) Information about the number of stalls, occupancy rates, number of vacant stalls, vacancy rates and stall categories in markets under the purview of the FEHD and the HKHA in the past three years (2023 – 2025) are set out in Annex 1 and Annex 2 respectively.
(2) The FEHD adjusts stall rental annually upon renewal of tenancy agreement or on the due date for rental adjustment as specified in the tenancy agreement according to the average of the year-on-year rates of change in Consumer Price Index (A) according to established mechanism, so as to catch up with inflation. In the past three years (2023 – 2025), the rental adjustment of the FEHD's public market stalls ranged between 1.7 per cent and 2.6 per cent, as detailed in Annex 3.
As for the rent adjustments for market shopstalls under the HKHA, upon expiry of shopstall tenancy agreements, the HKHA assesses the renewal rents on a case-by-case basis according to the prevailing market value of the shopstall concerned, taking into account the rental status of other comparable lettings under the HKHA as well as the private property market; and relevant factors which would affect rental values such as the business environment of the trades, the location, as well as the size and the pedestrian flow of the shopstall concerned, etc. As for certain sectors which are facing greater challenges under the current economic climate, the HKHA will pragmatically take into account their actual operating conditions and may consider rent reduction to help alleviate their operational pressure when assessing rents for these trades. Given that the extent of rent adjustments upon renewal across different types of shopstalls varies due to the above factors, it cannot be generalised.
(3) Over the past few years, the Government has introduced various measures to support businesses, including rental concessions to stall tenants of the FEHD's public markets and the HKHA's markets. The most recent concession took effect in July 2023, under which tenants were offered a 50 per cent rental concession for six months, benefiting over 12 000 stall tenants. The Government will continue to closely monitor economic conditions and assess the need for further support measures as appropriate.
(4) The FEHD has been maintaining close communication with stakeholders (including tenants, local representatives, trade associations and logistic operators etc) to explore measures to better utilise market stalls and space, including adding suitable facilities to cater to both the needs of public and operators. For example, in Aberdeen Market and Kowloon City Market, parts of their common areas have been leased to logistic operators for installation of smart lockers for self-service parcel collection, bringing convenience to public and helping to attract patronage of public markets. Last year, the FEHD also arranged site visits for operators interested in providing parcel delivery and collection services in markets, to assist them in identifying appropriate locations for setting up service points or business counters. Separately, if companies engaged in the online sale of fresh or frozen food wish to provide self-service collection facilities, relevant food packaging, transport and storage operations must comply with the requirements/condition in respect of food safety, relevant permits and market operation. The FEHD will continue to consider, with an open mind, proposals that meet the needs of the society and can help enhance public market operation.
(5) The Government welcomes young people to make use of market stalls or hawker pitches to start their own businesses. The FEHD is collaborating with non-profit organisations to provide 20 vacant stalls in Yue Man Hawker Bazaar, Kwun Tong for young people to sell handicrafts, household wares and groceries, etc. The FEHD is also planning to launch a similar scheme in Aberdeen Market and is currently identifying suitable partners. The department will take into account the implementation of the scheme in Aberdeen Market and further explore ways to make use of vacant stalls to support young entrepreneurship.
Ends/Wednesday, February 4, 2026
Issued at HKT 14:18
Issued at HKT 14:18
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