Tsim Sha Tsui, well known for its shopping arcades, looks destined to consolidate its status as a commercial hub as new retail projects are launched there in the next few years. Property consultants say about 1.15million sqft of fresh supply will be released in the district in the years ahead, not including the new Sogo department store. The fresh supply is certain to intensify rivalry between retailers and add zest to the district. DTZ Debenham Tie Leung retail agency director Lawrence Heung said: 'There is growing competition there.' Mr Heung said the Harbour City shopping mall on Canton Road, which has more than 700 shops, had been the focus of the retail sector in Tsim Sha Tsui in the past few years. The new supply includes a 1million sqft commercial-retail-hotel complex in Hanoi Road being developed by a joint venture between the Urban Renewal Authority and New World Development. CB Richard Ellis (CBRE) estimated the project would offer 337,954 sqft of retail space. It was due for completion next year. Wharf Holdings was increasing the size of its Ocean Terminal, part of the Harbour City shopping mall, by 25,000 sqft while Cheung Kong (Holdings) would add 50,000 sqft of retail space in the district when its hotel-commercial project on the former Marine Police headquarters site was completed by the end of next year or in 2007, the property consultant said. The biggest supply will come from the redevelopment of the Hyatt Regency, which will be knocked down in January and turned into an arcade with shops and restaurants. The gross floor area of the new building, when completed in 2008 or later, was estimated at 540,000 sqft. Chinese Estates Holdings will redevelop a 39-year-old office-retail building on Nathan Road into a modern and trendy retail-commercial complex. CBRE estimated the retail space would be 200,000 sqft. CBRE's retail agency director Joe Lin Chi-ho said: '[Landlords] are preparing for [the increased competition].' He cited Harbour City, known for housing international brand names such as Louis Vuitton, Prada and Gucci and, since last year, LCX, KidX and SportX, as enlarging its scope to attract young and affluent shoppers. Miramar Shopping Centre is changing its tenant mix by drawing international brands such as Uniglo and Folli Follie. Underground shopping centre Amazon, on Salisbury Road, will have a Sogo department store as a key tenant leasing an area of 115,000 sqft for 15 years. Property consultants said landlords had upgraded the retail sector in the district. Overall, retail rents in Hong Kong increased by 9.5 per cent in the second quarter of this year, with Tsim Sha Tsui recording the largest rise at 14.6 per cent, according to CBRE. Mr Lin said landlords in Tsim Sha Tsui achieved higher rent growth on the back of rising retail sales helped by greater purchasing power of local shoppers and more tourist arrivals. He said the area's shops and restaurants had always attracted tourists. Property consultants said Tsim Sha Tsui was also taking notice of the way small boutiques worked in Causeway Bay and was adding more small fashion shops to lure local shoppers. The Tsim Sha Tsui retail district would be further boosted by the $8.3billion Kowloon Southern Link, connecting the West Rail terminal at Nam Cheong to the East Rail terminal in Tsim Sha Tsui, consultants said.