Hong Kong property

Swire Properties’ first-quarter malls sales post increases as tourists returned to Hong Kong

PUBLISHED : Friday, 04 May, 2018, 9:27pm
UPDATED : Friday, 04 May, 2018, 9:39pm

Swire Properties said retail sales at the shopping malls under its management gained in the first three months of the year, as increasing tourist arrivals spilled over to higher shopping bills.

First-quarter retail sales jumped by 25.9 per cent at The Mall at Pacific Place in Admiralty, rising 11.7 per cent at the Citygate Outlets in Tung Chung, the company said in a press release. At Taikoo Shing’s Cityplaza shopping centre, which caters more to local residents instead of tourists, sales grew 7.7 per cent, Swire said. All three malls were fully occupied by retail tenants during the period.

“We have seen an encouraging improvement in overall domestic consumption and tourism spending, reflected in the continued sales growth in our malls in key segments such as F&B, lifestyle and luxury fashion, watches and jewellery,” according to a Swire spokesperson, quoted in the press release.

Hong Kong’s retail sales jumped by 11.4 per cent in March, the biggest monthly increment since June 2013, as mainland Chinese tourists returned to the city.

Swire, which builds offices and manages shopping centres in Hong Kong and mainland China, also reported strong performance in its office rental business. Rental reservation at Pacific Place - including lease renewals, new leases and rental reviews - rose 21 per cent during the first quarter. Reservations increased 10 per cent in Cityplaza, and rose 1 per cent in Taikoo Place.

One Taikoo Place, a Grade A office building in Quarry Bay, has been 80 per cent leased out by global firms, including Facebook, Baker McKenzie and Ernst & Young, even before it’s fully completed.