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PropertyHong Kong & China

Wang On hoping to buck retail gloom with Ginza-style projects

Developer sees enough opportunities for long-term growth despite sluggish retail sector

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Nathan Road in Mong Kok. Wang On chairman and chief executive Gary Wong Yiu-hung says returns from its Ginza-style sites there have been subject to the overall slower economic environment, but it will be able to capitalise on them when the market picks up. Photo: Edward Wong.
Celine Ge
Wang On Properties, a developer known for its boutique residential flats, is now banking on so-called “Ginza-style” commercial projects in busy shopping districts, to counter the lingering downturn in Hong Kong’s retail sector.

Named after one of Tokyo’s busiest shopping streets, Ginza projects are commercial properties where two businesses share the same space. The term was coined when sky-high retail rents for street-level shops forced stores in the city to move upwards, to offer more affordable space.

Faced with the current grim retail outlook and lacklustre economy, Wang On’s chairman and chief executive Gary Wong Yiu-hung said the concept offers great opportunities in Hong Kong.

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He also told South China Morning Post he is confident of identifying some “bottom fishing” investment opportunities that will provide ample gains in the long run.

“The Hong Kong economy will never hit a dead end. The short-term gloom will not develop into a long-term one and there are still enough opportunities for growth,”said Wong.

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“We accumulated shops in the city between 2004 and 2008, and actually things turned out well. We made that move when sentiment was extremely bearish,”he said.

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