Topic
Hong Kong ranks as the world's most expensive high-street retail destination with average rent of US$4,327 per sq ft per annum, surpassing New York, Paris, London and Tokyo by a substantial margin, according to the latest research from CBRE.
Hong Kong has, thankfully, passed on its world crown to New York, but cost of shops is still too high in city recovering from pandemic.
Return of mainland tourists does not mean business as usual for city retailers, who must think outside the box as circumstances change.
- The proposal to buy Far East Shopping Centre fell through after a firm linked to Du failed to get approval from the Urban Redevelopment Authority
- The transaction was set to be Singapore’s largest for a commercial property in 2023
The city’s commercial real estate market recovered partially in the first quarter of 2024 and is gearing up for further stabilisation this year as a rebound in consumption and policy support drive demand for leasing and investment, analysts say.
The 99-room The Opposite House, the group’s first hotel, will close after 16 years to make way for an ‘innovative retail landmark’ in the Taikoo Li Sanlitun area.
Retail and travel industry representatives say authorities should draw up strategies to support retailers through the mega-event economy and other initiatives.
Trends are likely to cap any rental gains in the retail property segment, where recovery will proceed in a gradual manner, analysts say.
Over the past two years, Japanese businesses have been the most active among foreign firms in terms of leasing retail spaces in Hong Kong, according to data compiled by JLL.
Harbour City and Times Square owner’s full-year 2023 profit fell 3 per cent to US$767.3 million even as revenue jumped 7 per cent. The company hopes to overcome headwinds through promotional activities with the Hong Kong government.
Watchmaker opens new multistorey shops in Central, Tsim Sha Tsui even as government predicts drop in tourism spending in 2024.
New World Development has agreed to sell its shopping centre and parking spaces in Tsuen Wan to Chinachem Group for US$510 million, speeding up asset sales to trim its financing costs.
Hong Kong’s largest family-owned lender said its non-performing loans in mainland China dropped by 0.47 percentage points to 2.68 per cent at the end of 2023 compared with the first half, as its overall exposure to troubled Chinese property developers shrank.
Commercial premises will need to step up and cover a huge predicted deficit of EV charging stations, while the recycling and storage of EV batteries may spur demand for industrial and warehouse space, the property consultancy says in a report.
The church has secured several floors at the property at 413-423 King’s Road as its ‘future permanent home in Hong Kong’, it said in a statement on its website.
The F&B sector, which contributed nearly half of Hong Kong’s retail leasing demand last year driven by new Chinese restaurants, will continue to be the biggest source of demand in 2024 as well, according to CBRE.
Jingyu Catering Group has leased nearly 6,000 sq ft in Peter Building at HK$341,000 (US$47,650) per month, according to an industry source. The rental outlook for high-street shops is improving.
Investment in Hong Kong property fell by 28 per cent to HK$37 billion (US$4.73 billion) last year, its lowest level since the 2008 financial crisis, but is expected to rise to HK$50 billion in 2024, Colliers says.
Retail property markets in China’s first-tier cities showed signs of improvement in the last quarter of 2023, fuelled in part by improved consumption, and the growth momentum is likely to continue this year.
Hong Kong’s luxury retail market is likely to regain some lost ground in 2024, say observers, as high-end brands return after an exodus sparked by 2019’s street protests and three years of pandemic restrictions.
As the pioneering independent watch boutique turns 10, we sat down with founder Piano Chow to talk about independent watchmakers, working with H. Moser & Cie and F.P. Journe, and what true collectors are really looking for
China’s biggest sportswear maker Li Ning’s purchase of a US$282 million mixed office and retail building to house its headquarters in Hong Kong, is a shot in the arm for the city’s slowing office property market.
The London-headquartered multibrand luxury retailer will close its doors in March, after deciding to give up its lease for 60,000 sq ft of space in the upscale mall.
Hong Kong’s shop rents are tipped to record one of the biggest increments in the Asia-Pacific region from next year until 2028, according to US-based asset manager PGIM Real Estate.
Hong Kong’s tourist hotspot of Tsim Sha Tsui retained its ranking as the most expensive retail destination in Asia-Pacific, but slipped to third place globally, according to a survey by Cushman & Wakefield.
The amount fell by more than a fifth from the same period a year ago to US$21.3 billion, the lowest figure since the second quarter of 2010, according to a report by property consultancy JLL.
Facing low foot traffic and a surge in cross-border shopping, New World Development and Nan Fung Development are among the landlords experimenting with new concepts to catalyse a rebound.
Hong Kong’s shopping centres are competing with each other for social media posts, with social e-commerce seen as a big contributor to footfall and sales in years ahead.
UK-based developer Berkeley Group has leased for a month the retail space formerly occupied by Italian luxury lingerie brand La Perla and Gucci in Causeway Bay.
11 Skies, touted as Hong Kong’s largest indoor entertainment hub, is adding Vquarium, the city’s first-ever ‘virtual deep-ocean adventure experience’, to its list of attractions, as landlords beef up entertainment offerings in shopping malls.
