One of city’s largest retail landlords says Hong Kong sector still recovering
Higher office rental levels boost bottom line of Hysan Development, whose properties include the new Lee Garden Three building
Officials at Hysan Development, one of the largest landlords in Hong’s Kong’s famous shopping district of Causeway Bay, say the city’s retail sector has still not fully recovered.
“We see good direction, but we still need to wait. We still have some concerns that retail sales have not recovered full-scale,” said Ricky Lui, its chief operating officer.
Roger Hao, its chief financial officer added that estimated tenant sales for 2017 saw a single-digit percentage increase, compared with 2016, during the company’s annual results briefing on Wednesday, which is on par with 2014 levels.
Hong Kong’s retail sales have declined on an annual basis since that year, but they rose 2.2 per cent in 2017 to HK$446.1 billion, ending the three-year decline, mainly driven by an uptick in mainland Chinese tourist arrivals.
Sales of jewellery, watches and clocks, and valuable gifts jumped 5.2 per cent in 2017 compared with the previous year.
Hang Seng Bank estimates a 4 per cent rise in the city’s retail sales this year and the Hong Kong Retail Management Association has forecast 3-4 per cent growth.