Hong Kong Retail Leasing

Housing Investment Consultancy
Retail Leasing

April 2016

Not everything is doom and gloom as short-haul markets have seen a recovery while mid-range retailers and F&B are both making a comeback.

kamaco retail rental index showed that prime street shop rents in traditional tourist districts dropped by 5% in Q1/2016 after tumbling by 30% last year.

The decline in overall overnight inbound tourists accelerated from 4% in 2015 to 9% in January and February 2016.

The steep deterioration in the Chinese market was to some extent compensated for by growth in the short-haul markets which were up by nearly 14% over the first two months of the year.

More market activity has been noted in recent months, with high-street fashion brands, active wear retailers and F&B operators all taking up space previously occupied by watches and jewellery and other mainland-focused trades.

In order to maintain rents, shopping mall landlords are now beginning to subdivide units while on the high street the reverse is the case, with owners returning units to their original size after years of subdivision.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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