Retail rents will rise by up to 20 per cent this year, fuelled by continuing expansion among major retail chains, particularly in prime locations, according to property agents.
Centaline Property Agency general manager Stanley Poon said the leasing market had become active again from March, with more retailers seeking expansion opportunities in tourist belts such as Tsim Sha Tsui.
'Existing landlords in Causeway Bay will also benefit from the growing relocation demand, as the Hennessy Centre will be pulled down for redevelopment,' he said, adding that retail rents could rise by up to 20 per cent this year.
Mr Poon said that in Causeway Bay, monthly rents at shopping malls were $50 to $300 a sq ft, while high-street shops cost $100 to $1,000 a sq ft.
Colliers International retail services group senior manager Helen Mak has revised the firm's forecast upward to a 10 per cent rise in retail rents this year, from 5 per cent a year ago, after seeing retail sales rebound since April.
Chartersince Surveyors associate director Desmond Poon Chi-ming said shopping mall rents could increase further as most of them had long waiting lists. 'Developers have the financial strength to drive traffic by organising large-scale promotional activities to help boost tenant business.'
