Hong Kong Retail Leasing

Housing Investment Consultancy
Retail Leasing

March 2017

We believe that the recent rental adjustment cycle has overshot in the prime street shop segment, and rents are likely to bottom out in the second half of the year.

There were early signs of a slowing rate of decline in the prime street shop segment in the second half of 2016, with rents down by 20% y-o-y in 2016 compared with the 30% decline recorded in 2015. 

After tumbling by over 50% from their peak in early 2013, rents on the street have now returned to pre-GFC levels.

The sharp rental adjustment is out of sync with a local economy which is in better shape compared with eight years ago

Centre landlords are becoming slightly more flexible on leasing terms and rental rates, while more short-term leases are noted in core locations.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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