Banks fighting back against luxury shops for prime space
After being forced to leave the best locations because of soaring rents, bankers are now looking to return to the areas they initially vacated
Sharp-suited bankers are fighting to return to prime locations in Hong Kong where soaring rents had previously forced them to make way for global luxury labels.
While some capital-hungry banks have turned to smartphone-backed internet banking platforms to save the cost of maintaining physical branches, others are more committed to bricks and mortar. These banks see expanding their network as a rare opportunity to catch up with rivals in terms of marketing.
Standard Chartered, one of the city's big three banks, said it would invest HK$1 billion to set up a regional private banking service centre in Central to serve the bank's high-end individual clients. It agreed to lease the entire five-floors of space at The Forum in Exchange Square late last year and has signed a leasing agreement with Hongkong Land, the biggest landlord in Central.
Another major local bank is set to lease 20,000 square feet of a five-level shop on Canton Road in Tsim Sha Tsui, one of the busiest shopping streets in the city, for a monthly rent of HK$6 million, or HK$300 per square feet, according to a property market source.
"It will mark the first time a bank has returned to Canton Road, which is fully occupied by global fashion brands catering to mainland shoppers," the source said.
Food and beverage operators, and banks have been edged out by luxury jewellery and watch retailers and international brands along Canton Road over the past six or seven years owing to soaring rents.
Taking advantage of softening retail rents in prime locations, he said it was the turn of banks to take up these valued spaces.