Cut rents now or miss out, CY Leung tells Hong Kong landlords
But lawmaker says Hong Kong is free, capitalist market and authorities should not intervene, adding if they do, price to pay will outweigh gains
But market observers said on Friday that many landlords were willing to reduce rents, except for highly sought-after shops in prime locations, with some noting that retailers also had the responsibility to reinvent their offerings.
In a social media post on Thursday, Leung pointed to the rate of vacant commercial buildings in the city, which had reached a record high of 11.8 per cent by the end of 2024.
He said that soaring rents had forced restaurants to have extremely cramped washrooms and to store ingredients outside toilets, leading to unpleasant experiences compared with Shenzhen, where each dining area has its own stand-alone facility.
His remarks were made as some political parties, according to sources, voiced tenants’ woes and proposed countermeasures during the ongoing public consultation on Chief Executive John Lee Ka-chiu’s 2025 policy address.
“Landlords cannot let a property sit empty and refuse to lower the rent just because you are afraid of bank repossession. Sooner or later, you will have to face the reality of high vacancy rates and falling market rents,” Leung said.