Hong Kong Retail Briefing

While high street rents are beginning to soften, we can expect further rises in shopping malls this year.

May 2014

 
  • Hong Kong’s retail leasing market was subdued over the first three months of 2014, particularly in the prime street shop segment.
  • The rental expectations gap between landlords and retailers has held up market activity and driven up vacancy in second- and third-tier streets, and even in some prime locations.
  • Slowing take-up, early surrenders and increasing vacancy in the street shop segment are starting to test landlords’ patience and financial strength.
  • Rental adjustment in the prime street shop segment continued in Q1/2014, with rents falling slightly by 0.5% after a 2.2% decline in 2013, following steeper rental declines in some secondary locations.
  • While the anti-corruption campaign is heating up in China, sales of luxury goods in Hong Kong have continued to cool in the past few months.
  • Base rents at major shopping centres grew by 1.7% quarter-on-quarter (QoQ) over the first three months of 2014.
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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