New Territories malls allocate more space to attract global brands
With more young people attracted to the area by lower home prices, brands are likely to follow
Landlords of shopping malls in the New Territories are changing the floor plans of their properties to create larger shops that may be leased to big international brands.
"The redesigns will definitely become a future trend for shopping centres in the New Territories, as big brands would like to capitalise on the strong and growing purchasing power of local residents," said Jeannette Chan, a regional director of the retail department at property agency Jones Lang LaSalle.
International brands such as H&M, Zara, Coach, and Marc Jacobs have already extended their reach to the New Territories, where few global brands had any presence five years ago, she said. More brands were likely to follow the trend.
Henry Lam, general manager for leasing at Sun Hung Kai Real Estate Agency, a subsidiary of Sun Hung Kai Properties, said SHKP would renovate its Metro Plaza at Kwai Fong MTR station, and Sun Yuen Long Centre in Yuen Long, following the successful transformation of its Tsuen Wan Plaza.
"Previously, shopping centres in the New Territories were dominated by small shops and local brands. Residents in Tsuen Wan, Tuen Mun, and Yuen Long had to travel all the way to Tsim Sha Tsui or Central to shop for big fashion brands," said Lam. But with a growing number of younger people lured to the area by more affordable home prices, international brands were likely to follow, he added.
Lower rents in the New Territories are another attraction to global brands wishing to expand their footprint in Hong Kong.
Chan said rents at shopping malls in the New Territories ranged from HK$200 to HK$300 per square foot, compared with HK$500 to HK$800 per square foot at Harbour City in Tsim Sha Tsui.