CALIFORNIA appears to be flavour of the month in Hong Kong's retailing circles, with the launch of another shopping centre designed to reflect the bright and breezy atmosphere of the 'Sunshine State'. Both Wharf (Holdings)/Wheelock Properties and Sun Hung Kai Properties have new developments on the market this month with mega malls based on the great Californian dream. Last week, Wharf/Wheelock began marketing the giant new Hollywood Plaza shopping development, which will be the largest shopping complex built in east Kowloon. Now Sun Hung Kai Properties has announced details of its $40 million Palm Springs shopping centre at its residential estate in Yuen Long of the same name. To date, two stores have taken out leases in the 60,000 sq ft shopping complex. Supermarket chain Wellcome has signed up for 4,791 sq ft of space and convenience store 7-Eleven has agreed to take 998 sq ft. Sun Hung Kai is negotiating with potential tenants, including restaurant operators. A spokesman said the company was happy with its leasing progress. The developer is looking to attract upmarket retail tenants to the complex, although this would take time, she said. Sun Hung Kai is confident there will be plenty of people visiting its retail complex, because it believes there is a shortage of shops in the Yuen Long and Tolo Harbour areas. The spokesman said the Government had asked Sun Hung Kai to build a 50,000 sq ft shopping centre to service the area, as a clause to its development rights for the area. A total of 768 houses at the Palm Springs residential estate would be occupied now, representing half of the 1,400 houses to be built there, the spokesman said. The remaining houses would be ready for occupation early next year, she added, bringing the eventual population of Palm Springs to about 5,000. In addition to attracting Palm Springs residents, Sun Hung Kai hopes people living on other estates now under construction in the area will also shop there. For example, Sun Hung Kai anticipates residents at nearby Fairview Park will come to Palm Springs, because the shopping centre at their own estate is relatively small. But Jimmy Liu Chi-wai, assistant sales manager at Midland Realty's Fairview branch, said the Palm Springs shopping centre suffered from having too few potential customers living on the estate at the moment. Once the remaining houses were built, turnover would increase. But until then, boutiques would not be attracted because turnover levels would be too low. Shoppers from outside the Palm Springs estate would only visit the shopping centre on weekends and public holidays, he added. In view of the difficulties he felt the shopping centre would face in attracting customers, the rents were reasonable, Mr Liu said. Palm Springs retail rents average between $21 and $35 a square foot. Sun Hung Kai hopes the shopping centre will lure returnees from North America and other people attracted to the idea of shopping in a United States-style mall. Sun Hung Kai said there was increasing demand for Californian-style shopping centres in Hong Kong, particularly from young families. Ian Butler, managing director of architect firm RMJM, said there was a growing trend for building retail developments with themes, such as Palm Springs, to help distinguish them from other shopping centres. FACT FILE DEVELOPMENT: Palm Springs Shopping Centre, a two-storey retail complex located at Wo Shang Wai, Yuen Long DEVELOPER: Sun Hung Kai Properties SPACE OFFERED FOR LEASE: 60,000 sq ft AVERAGE MONTHLY RENT: $21-$35 a square foot TOTAL NUMBER OF SHOP UNITS: 64 SIZE OF UNITS: From 238 to 4,743 sq ft LAUNCH DATE: This month COMPLETION DATE: This month AMENITIES: 200 open car parking spaces, shuttle buses to Star Ferry and Kowloon MTR, Yuen Long LRT and Sheung Shui railway station. Roads to Tai Po, Central, Wan Chai and Kowloon SOLE LEASING AGENT: Sun Hung Kai Properties