Hong Kong’s shopping mall rents rise for the first time in a year as foot traffic improves
The SCMP-JLL prime shopping centre rental index shows rents ticked up 0.2 per cent in the December-ended quarter, reflecting the first gain in a year
Hong Kong’s prime shopping centres recorded growth in rental rates for the first time in three quarters, lifted by improving retail sales as local consumers enjoyed the wealth effects brought by rising property and stock prices.
Rental rates rose 0.2 per cent to 145.6 in the December-ended quarter, reflecting the first increase since the fourth quarter of 2016, according to the SCMP-JLL Prime Shopping Centre Rental Index.
The index tracks leasing at 30 prime shopping centres including Harbour City in Tsim Sha Tsui, Times Square in Causeway Bay and IFC Mall in Central.
“It is the first quarterly improvement recorded since January, 2016,” said Terence Chan, head of retail at JLL, “The rebound is mainly driven by growth in retail sales and the rebound in tourist arrivals. The recent bull run in the stock market has reaped strong gains for local people, which has helped to drive consumption.”
Kevin Lam, executive director and head of business space, retail and office services at Cushman & Wakefield, said cosmetics and sportswear retailers recorded improved sales during the Christmas and New Year holiday period compared when compared with 2016.
“Cosmetics tenants have registered double-digit growth in sales. In general, sales of affordable luxury goods have had an overall improvement,” he said.