Canton Road defies the retail property market with rising store rents
Canton Road in Tsim Sha Tsui, a favoured destination of mainland shoppers, is the only street in the city in which rents continue to rise, according to property agents.
According to a report from Sheraton Valuers, 10 shops in Canton Road changed hands this year. "In all cases the new tenants are paying higher rents than the previous ones," said Sheraton chairman Sunny Yam Wing-yin.
"The most expensive one is the shop rented by jewellery and watch retailer Chow Tai Fook," he said.
The 2,300 square foot shop is being let for HK$6 million a month, almost triple what the previous tenant, A/X Armani Exchange was paying.
New tenants are mainly retailers of luxury items such as jewellery, watches, and cosmetics, electronics and smart phones, and computers.
Yam said Canton Road remained a draw card for mainland tourists on the hunt for luxury items.
They don't have to stroll far, as the street is surrounded by several major shopping malls, including Harbour City and Heritage 1881, both of which are a magnet for the visitors.
Last week, Emperor Watch and Jewellery replaced Esprit.
Apple will take over the space to be vacated by fashion retailer Chocoolate and cosmetic shop Clarins.
Average rents in Canton Road rose 25 per cent in the 12 months to June, according to a research report from Savills.
While rents in Canton Road are rising, rents in other prime shopping destinations such as Russell Street, Causeway Bay, have stopped rising, Savills' report said.