Hong Kong retail rents will rise thanks to economic recovery from Covid-19, government consumption vouchers scheme, says Hysan Development
- Sales and footfall in shopping centres have increased with the government’s distribution of HK$5,000 (US$642.56) consumption vouchers to each Hongkonger this month
- Hong Kong’s retail sales rose 8.4 per cent from a year earlier in the first half of 2021 as the local Covid-19 situation stabilised
Sales and footfall in shopping centres have increased with the government’s distribution of HK$5,000 (US$642.56) consumption vouchers to each Hongkonger this month and the easing of Covid-19 cases, said Ricky Lui, chief operating officer at Hysan at a briefing on Wednesday.
“The stimulus from consumption vouchers has triggered some stabilisation effect [on the retail market]. Footfall, business and sales have risen,” Lui said. “Rent has hopefully found its bottom and will gradually rise as consumption rises.”
As for office rentals, Hysan will strive to retain tenants and recruit new ones as pressure persists in the sector, Lui said.
Rents for offices and homes fell in the first half, according to a filing to the Hong Kong stock exchange on Wednesday. But cases of retail rent reductions are becoming more scarce, Lui said.