Retail Sales And Shops Rents Fell Sharply In The Third Quarter Of Hongkong.

 

The continued turbulent social situation in Hongkong has caused a great impact on tourism and retailing in Hongkong. Traffic congestion and violent protests have led to a sharp decline in the number of tourists to Hong Kong, and the retail industry has suffered a great deal. According to the statistics of the Hongkong Government Statistics Department, the total retail sales in Hongkong in July were temporarily estimated at HK $34 billion 400 million, down 11.4% from the same period last year. In August, the total retail sales volume was temporarily estimated at HK $29 billion 400 million, down 23% from the same period last year. The total retail sales in the first eight months of 2019 were temporarily down 6%.

 

At the same time, as the retail industry continues to slump, Hongkong's real estate rental market is also in the doldrums. According to data released last week by the Hongkong government, at least 100 restaurants have been closed in the past few months, and the Hongkong government has repeatedly urged landlords and real estate developers to reduce their rents.

 

According to a survey published last month by Midland IC&I, a real estate brokerage firm, the vacancy rate of shops in four core shopping areas in Hongkong rose to 6.5% in the third quarter, up from 5.6% last year. Midland IC&I predicts that in the second half of this year, the rental of Hongkong core blocks will decline by 10%-15%, and the vacancy rate of shops will rise to 8%-9% next year.

 

 

 

Midland IC&I said the rental of three floors of an area of about 1000 square meters in Tongluowan, Hongkong, has been reduced by nearly 30%. Hongkong railway operator MTR Corp has said that rent and other fees will be repaid to the tenants in proportion to the closure of the station or shopping center.

 

MTR and Hongkong real estate company Henderson real estate and HSI Shen also temporarily adjusted the rents of some tenants, and launched a series of promotional activities to attract merchants.

 

Not long ago, Prada, a luxury brand in Italy (Prada), decided to withdraw from the lease of the Plaza 2000 store in Russell street, Tongluowan, Hongkong. Early Light Group, the shop owner, said that the monthly rent of the shop would be reduced by 44% to 5 million Hong Kong dollars after the Prada was withdrawn.

 

Daniel Wong, chief executive of Midland IC&I, said: "leasing transactions are becoming less and less, and few people are willing to bid. Most of them are not optimistic about the future and choose to continue to observe. Fortunately, however, there are not many merchants who terminate the lease. "

 

Lawrence Wan, senior director of retail consulting and trading services in Hongkong, CBRE, said: "some retailers have been negotiating with the landlord about the lease adjustment, such as temporarily adjusting the rent to smooth through the special period." Lawrence More and more customers are asking us about short-term leasing. Some retailers hope that the coming Christmas and Spring Festival will help reduce inventory. "