HONGKONG'S retail property rental market is expected to increase by 10 per cent this year, according to property agents Brooke Hillier Parker.
Despite a boom in retail property rentals last year, surveys predict a brake this year as consumer spending becomes cautious and there is likely to be a surplus of retail properties on the market.
Mr David Faulkner, a partner with Brooke Hillier Parker, predicted that rentals would not rise more than 10 per cent this year.
He said: ''Last year was a good year. But I don't think it will continue in 1993. Hongkong's retail property prices are already among the highest in the world, it can't maintain that rapid growth.'' He added that rent could be as high as $800 per square foot per month in small shops in Central and Causeway Bay.
Last year, consumer spending was up 20 per cent. That led to a boom in retail property rents that Mr Faulkner estimated at 15 per cent.
About 80 per cent of retail stores are for lease with the rest for sale.
A survey carried out by Kaiser Properties shows a 15-per cent growth in the third quarter in mainly second-tier areas, such as Western District and Shamshuipo.