Luxury Swiss watchmaker Audemars Piguet is set to open one of its largest Asian flagship stores in a prime Hong Kong tower owned by New World Development Co, betting on resilient demand from the city’s growing ranks of wealthy residents.

The brand will occupy a 13,000 square-foot space at New World Tower in Hong Kong’s Central business district, paying more than HK$2 million ($254,830) in monthly rent, said people familiar with the matter, who asked not to be identified because the discussions are private. Audemars Piguet will replace Emperor Watch & Jewellery Ltd, whose lease is due to expire in February next year.

Audemars Piguet will also take up another store of about 7,000 sq ft in the nearby Henley Building developed by a separate Hong Kong business family, paying around HK$1 million a month, the people said. The space will be transformed into an experience-led destination showcasing the brand’s heritage and rare collections, the people added. Dubbed the AP Lab, it will be among the few locations globally — after Tokyo and Geneva — to feature the concept.

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New World didn’t respond to a request for comment, while Tung Hing Yip Investment Co, which represents Henley Building’s landlord, declined to comment on market speculation. Audemars Piguet said it was unable to comment.

The watchmaker’s expansion comes as Hong Kong’s luxury market remains resilient. Demand has been supported by the special administrative region’s high concentration of affluent residents as well as an influx of returning Western expatriates. Global brands are competing for spaces in the city’s most prestigious retail districts as rents remain well below pre-pandemic levels, helping fuel a revival in retail property demand.

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Founded in 1875, Audemars Piguet remains one of the few major luxury watchmakers still controlled by descendants of its founding families. Unlike listed rivals such as Swatch Group AG and Cie Financiere Richemont SA, the company has maintained an aura of scarcity through limited production, helping make its Royal Oak collection one of the most sought-after luxury products in the world.

Sales for jewelry, watches and valuable gifts rose 23 percent in the first eight months in Hong Kong, outpacing the 9 percent growth in overall retail sales, according to latest SAR government data.

Audemars Piguet’s store in New World Tower will feature an exclusive VIP lounge for its biggest customers, the people familiar said.

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It follows a string of major global names that have expanded their presence in Hong Kong. LVMH Moet Hennessy Louis Vuitton SE’s Louis Vuitton is set to open a 40,000 sq ft flagship at New World’s K11 Musea mall by the end of this year. Popular American leisurewear brand Alo made its debut this year at the same mall. French label Lacoste SA has also opened its largest store in the city this year at the landmark Pedder Building.