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PropertyHong Kong & China

Rents go up in APM mall amid expectations of strong Christmas sales

Mall hopes improvement in economy will generate HK$900m in fourth quarter

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Maureen Fung Sau-yim, the executive director of Sun Hung Kai Properties (China), a wholly owned subsidiary of Sun Hung Kai Properties, said the company had renewed leases involving 40 per cent of total space at APM since January. Photo: SCMP
Sandy Li

Rents at APM, Sun Hung Kai Property’s flagship mall in Kowloon East, have gone up by as much as 15 per cent as leases have come up for renewal this year.

Maureen Fung Sau-yim, the executive director of Sun Hung Kai Properties (China), a wholly owned subsidiary of Sun Hung Kai Properties, said the company has renewed 71 leases involving 230,000 square feet, or 40 per cent of total space, at APM in Kwun Tong since January.

“Rents for these new leases have risen by 10 per cent to 15 per cent,” she said. At present, average rents at APM range from HK$100 to HK$450 per sq ft.

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With the overall improvement in Hong Kong’s economy, she believes retail sales at APM could generate HK$900 million in the fourth quarter.

“It will be about 10 per cent to 12 per cent [more] from a year ago,” she said.

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To capitalise on the upcoming Christmas holiday, a traditional peak season for retail, she said the company had set aside a promotional budget of HK$28 million, up 10 per cent from 2016, with the aim of pulling in sales of HK$500 million at APM between November 19 and January 3.
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