CBRE today launches the Hong Kong Retail Q4 2014 MarketView. For more information or to arrange interview with one of our experts please contact [email protected] / 2820 8108.
Joe Lin, Executive Director, Retail Services, CBRE Hong Kong expects 2015 to be a challenging year for retailers. “The overall sentiment in the retail market has improved after the political protests, and retail sales have seen a mild increase in the last quarter. However, retailers need to be cautious of the gradual decrease in luxury consumption from mainland Chinese shoppers. This, coupled with expensive rents in tier 1 streets, may result in overall prime street shop rents falling up to 5% with premises in tier II locations likely to experience a more significant decline.”
CBRE Outlook for Q1 2015
Local leasing market expected to be driven by mid-tier brands; whilst watch and jewellery retailers are expected to remain keen to secure street shops with good visibility and high marketing value
Sustained demand coupled with the limited availability of street shops on prime streets will prevent rents in tier I locations from falling, yet landlords on secondary streets in prime shopping districts will need to stay flexible towards asking rents
CBRE Highlights for Q4 2014
The “Occupy Central” protest mainly disrupted the retail business of street shops in Mong Kok and Causeway Bay in the early half of Q4. Overall sentiment seemed to have improved towards the year-end amid holiday season with watch and jewellery retailers becoming active in committing to prime street shops
Weaker retail sales growth, greater economic and political uncertainty and the increased availability of space in fringe areas all combined to exert pressure on retail rents. Overall rents for prime streets shops remained largely stable during Q4 with a slight drop of 0.2% q-o-q, with the exception of Central witnessing a modest fall of rents by 0.8% q-o-q due to softer demand from luxury brands
To view full Hong Kong Retail MarketView Q4 2014, click here.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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