Shops in Causeway Bay see sales hit by Hong Kong protests, says landlord Hang Lung, as retail rents seen tanking
- Hang Lung chief executive Weber Lo said the mass rallies had damaged sales of its tenants in Fashion Walk, while Knight Frank predicted rents for high-street shops will fall by up to 10 per cent in 2019
Hong Kong’s retail sector has been hit by weeks of protests that have frequently descended into violence, according to Hang Lung Properties, a major landlord in one of the city’s best known shopping areas.
The company’s chief executive Weber Lo said the mass rallies had damaged sales of its tenants in Fashion Walk, Causeway Bay, while Knight Frank predicted rents for high-street shops will fall by up to 10 per cent in 2019.
“[In light of] the recent confrontations, as Hongkongers we of course feel a little uneasy,” Lo said. “Recently when we communicated with some of our tenants, we know that during the days when incidents occur, there is a certain impact on their retail sales.
“We hope order and peace can be restored soon and try to minimise the impact.”
Lo declined to specify the extent of the impact, but said one or two tenants in busy areas had to close their doors when the rallies spilled into Causeway Bay.
“We hope order and peace can be restored soon and try to minimise the impact.”
He was speaking after the company reported a 4 per cent decline in underlying first-half profit to HK$2.23 billion (US$285.06 million), while revenue fell 18 per cent to HK$4.2 billion.
Hang Lung saw 3 per cent growth in revenue from property leasing in Hong Kong in the first half, unchanged from a year earlier. The massive protests that have shaken Hong Kong began in early June so are unlikely to be fully reflected on paper until later in the year.