Update | Property agents see an unusual trend in Central’s retail leasing market
Many of the big international brands that signed leases at the top of the market a few years ago are willing to hand over to newcomers, as the city’s retail slump continues
The inside word going around Hong Kong’s property circles is that retail space in Central is available to any global retailer for the taking, as existing tenants will be happy to move out to cheaper locales to survive the city’s retail slump.
Property consultants said an influx of global brands bidding up retail rents by taking up large spaces for their flagship stores in 2013 now found themselves in trouble, as the sector is hit by dwindling footfall and weakened spending for luxury goods.
Helen Mak, senior director and head of retail services at Knight Frank, said now is a good opportunity for retailers to expand as landlords are willing to lower rents.
“There is a black joke circulating in the industry. International brands can have shops anywhere they want in Central as existing tenants will be happy to give up their spaces at any time,” she said.
For the past three years, Hong Kong’s retail market has been hard hit by the falling in tourist arrivals from the mainland and yuan depreciation. Retail spending for jewellery, watches, and other valuable goods plunged 30 per cent to HK$29.7 billion (US$3.8 billion) in the first half this year, from HK$52 billion in the same period in 2013.