In Hong Kong–a fast-paced and high-pressure city–late marriages, low birth rates, and a rise in people choosing to remain single have become increasingly common. For many, pets have become life companions, seen not just as animals but as true family members. This emotional shift has driven the growth of a powerful “pet economy.”
Globally, the pet market reached US$261 billion in 2022 and is projected to grow to US$350 billion by 2027, with a compound annual growth rate of 6.1%. Hong Kong, in particular, has felt this trend strongly.
According to industry research, Hong Kong’s pet market is now worth HK$6.2 billion, with the average monthly spending per pet at around HK$2,000. Events like the Hong Kong Pet Show recorded over HK$100 million in sales in just four days, with each attendee spending an average of HK$2,300—a nearly 30% year-on-year growth.
This wave of spending power is not only reshaping the retail market but is also gradually influencing the real estate sector and community planning, making “pet-friendly” an important consideration for both lifestyle and investment. In other words, the pet economy is transforming both housing trends and the commercial landscape in Hong Kong.
Reshaping Housing Demand: Pet-Friendly Designs as a New Selling Point
As more families view pets as integral parts of their lives, housing preferences have evolved. Many pet owners now look for homes with more spacious layouts to accommodate dogs, or features like balconies and green spaces that allow cats to bask in the sun.
In recent years, some new developments in Hong Kong have started allowing pets and incorporating pet-friendly designs. For example, projects like Oasis Kai Tak, One Kai Tak, and The Henley near Kai Tak Runway Park and the Airside shopping mall provide convenient amenities for both humans and pets. In Tseung Kwan O, estates such as Monterey and Savannah are popular among young families due to their proximity to pet parks and seaside restaurants. These examples illustrate how pet-friendly features are becoming a key selling point in the real estate market.
The trend is also evident in the secondary market. Units with pet-friendly features are often more desirable. For instance, at Ocean Wings in Tseung Kwan O, the estate includes a dedicated "Pet Zone" and is close to the pet-friendly mall, PopWalk, making it convenient for residents and their pets. According to recent transaction records from 28Hse, Ocean Wings achieved a price of HK$17,421 per square foot.
Enhancing Community Amenities: Boosting Neighborhood Appeal
“Pet-friendly” is no longer just about whether a building allows pets—it’s about the entire community environment. Traditionally, property buyers or renters prioritized factors like convenient transportation or nearby supermarkets and shopping malls. Now, many are equally concerned about whether there are veterinary clinics, pet grooming salons, or pet-friendly cafes in the area. These facilities not only make life easier for pet owners but also inject vibrancy and character into the community. A neighborhood equipped with such amenities naturally becomes more attractive, positively impacting property values and rental demand.
Take Grand Promenade in Sai Wan Ho as an example. The estate’s podium garden includes a designated "Pet Zone," making it one of the few large-scale developments in Eastern Hong Kong Island with exclusive pet facilities. Residents can walk their pets without leaving the estate, giving Grand Promenade a unique edge over other properties in the area and making it particularly appealing to pet-owning tenants.
Globally, pet-friendly housing is also gaining traction. In Japan, rental apartments are increasingly incorporating pet-friendly designs. For instance, Tokyu Land Corporation offers properties that can accommodate large dogs or multiple pets, while Mitsubishi Estate plans to provide on-site pet-sitting services and dog-care facilities within their apartments. With the rise of single-person households and longer hours spent at home, the demand for pets has grown, and developers are leveraging this trend to increase rental income and occupancy rates.
These examples show that pet-friendly facilities not only improve living environments but also serve as a long-term factor in enhancing property value.
Pet-Friendly Properties: A New Investment Opportunity with Long-Term Value
For developers, the rise of the pet economy presents a potential breakthrough in today’s real estate market. Positioning new developments as “pet-friendly” not only appeals to a specific demographic but also sets the projects apart from others, increasing their competitiveness. As pet ownership continues to rise in both Hong Kong and internationally, investors believe that the demand for such properties will grow, which could lead to higher occupancy rates and rental yields. Additionally, pet-friendly designs help create vibrant communities that attract young families and long-term tenants, ultimately contributing to the stability and long-term value of the property.
While managing pet-friendly properties may require additional considerations, such as cleaning and maintenance, these challenges can be addressed through effective planning and professional management. For instance, property managers can implement clear pet policies, designate specific pet-friendly areas, and schedule regular cleaning to minimize noise and hygiene concerns. These measures not only reduce risks but also enhance resident satisfaction and foster a stronger sense of community.
With well-thought-out management and facilities, the advantages of pet-friendly properties become evident, and the associated challenges become manageable. In the long run, such designs could become a key factor in driving property value.
The Pet Economy: A New Growth Driver for Hong Kong’s Retail Sector
In recent years, pet-related spending has become increasingly common, offering a fresh growth direction for Hong Kong’s retail industry. Through a variety of pet products, services, and events, the retail sector has found a way to thrive even during periods of weak consumer sentiment, attracting both local residents and tourists.
For example, pet exhibitions and markets have proven effective in boosting foot traffic in shopping malls. The Airside mall in Kai Tak collaborated with several pet brands to host a market, which significantly increased visitor numbers. On the other hand, many pet owners are willing to spend on high-quality pet food, custom products, and grooming services, creating opportunities for retailers to expand their offerings. These can range from everyday items to premium goods, catering to a wide spectrum of consumer needs.
Local brands are also benefiting from this trend. For instance, the Hong Kong-based pet food brand Astkatta has successfully expanded to Singapore and South Korea, demonstrating the international competitiveness of local products. By supporting homegrown brands, retailers can not only strengthen their market position but also explore overseas markets.
Moreover, retail stores are no longer limited to selling products—they are incorporating more services such as pet grooming, health checkups, spas, and photography sessions. These services not only generate additional revenue but also encourage repeat visits from customers. The pet economy can even intersect with tourism retail, with offerings like pet-friendly hotels, theme parks, and cross-border shopping activities attracting visitors from mainland China.
At events like the Hong Kong Pet Show, around 10% of attendees were from mainland China, with some bringing suitcases to shop in bulk. This shows that the pet retail sector not only drives local consumption but also boosts tourism retail, making it an increasingly important focus for the industry.
A Future of Human-Pet Integration
Looking ahead, the pet economy could become a new direction for both the real estate and retail sectors. With government support for pet-friendly planning, the market transformation could accelerate. Developers may introduce more housing options tailored to pet-owning families, while residential designs and community planning may further evolve to accommodate the needs of pets.
Similarly, the retail industry can find new growth opportunities in the pet economy by organising mall events, increasing foot traffic, offering premium services, supporting local brands, and expanding service offerings. In an environment of weak consumer sentiment, this shift could be a game-changer. If integrated with tourism, Hong Kong’s retail market could regain vitality through the trend of “human-pet integration.”
The rise of the pet economy aligns with both consumer needs and market trends. For the real estate sector, embracing this shift could open up new opportunities beyond traditional frameworks. For the retail industry, leveraging this trend could provide a path to growth during challenging times. Pets are no longer just companions—they are a transformative force reshaping urban lifestyles. By recognising this trend, Hong Kong’s real estate and retail markets can create living and shopping environments that are more in tune with people’s needs and aspirations.
