Home RSS
Real Estate
Cars

Hong Kong’s retail property market thrives at expense of competitiveness

Property Report
Wellington Street is home to retailers and brands that are more flexible in their location preference, and are willing to explore streets close to first-tier locations.

Wellington Street is home to retailers and brands that are more flexible in their location preference, and are willing to explore streets close to first-tier locations.


According to recent reports by Colliers International, while the residential, office and industrial sectors in Hong Kong are expected to see downward adjustment pressure amidst global economic uncertainties, the local retail property sector is the exception with an uptrend tagged to its outlook in 2012.



In Colliers’ Retail Market Research and Forecast Report, the average ground-floor retail property rent increased 5.3   per cent quarter-on quarter in 1Q 2012 in the key shopping districts – Central, Causeway Bay, Tsim Sha Tsui and Mong Kok. Over the next twelve month, retail rents are projected to see a further growth of 12 per cent.

“Shop rents at individual prime street segments currently range from HK1,100 (US$128) to over HK$1,200 (US$154) per sq ft per month, which is more than 300 per cent over ten years ago,” said Simon Lo, executive director of Research & Advisory, Asia at Colliers International. “However, the sharp rise of shop rents in these key shopping districts is not representative of the entire picture of the overall retail market in Hong Kong.”


Source








 
_________________________________________________________________________
 
Disclaimer: The information presented and opinions expressed herein are those of the authors and do not necessarily represent the views of Estates Report and/or its partners.