Retail sales are improving
The trading business is stable, and people in the industry believe that the improvement in retail sales and the increase in the price of shops have lagged behind.
Ashley Road Shops for 99.5 million transactions
In the recent period, there has been steady sales of shops. There are no shortages of mid-priced shops, such as the ground floor of 20 to 20A Ashley Road in Tsim Sha Tsui. It covers an area of about 2,200 square feet and was sold for about 99.5 million yuan. The discount price was about 45,000 yuan. The buyer is the owner of Wenhui Cuttlefish Puppets. The current shop is rented by the restaurant for RMB 208,000 per month. The lease is until November 2019, and the return rate is about 2.5%. At the same time, it was located on the ground floor of 10A Humphreys Avenue in the same district with an area of about 1,100 square feet. It was purchased by a senior shop investor Tang Chu Nan and involved a capital of approximately RMB 80 million with an average price of RMB 72,727. The shop is rented by the fashion shop for a monthly fee of 168,000 yuan, and the return rate is about 2.5%. The original owner had purchased it for $16.48 million in November 2003. He had held the goods for more than 14 years and had made profits of RMB 63.52 million, which was about 3.9 times higher.
In respect of fine-price shops, Shenghui Store Li Genxing has recently performed very positively, including buying about RMB 19 million at Shop J, G/F, 15 to 15C, Belcher’s Street, Western District, with an area of approximately 500 square feet, and a discount price of approximately RMB 38,000. The shop is now rented from the Liangguodian at a monthly rate of RMB 35,000.
Jin Chaoyang Center Shop 30% Renewal
As regards renting, the first-floor street shop in the core area is still being adjusted, such as the ground floor of the Golden Chaoyang Centre, 38 Russell Street, Causeway Bay. It has an area of approximately 795 square feet and is currently leased by the Swatch Group’s radar watch. The brand’s 2015 sales were 1.5 million per month. The yuan rents shops and the lease expires in August this year. According to the sources, the brand and the landlord recently reached an agreement to renew the lease early, the monthly rent was reduced to about 1 million yuan, and the lease rate was 1,258 yuan, which was about 33% lower than it was three years ago. If compared with the higher peak period, it dropped 60%.
Lu Zhanhao, director of Midland Commercial Store, pointed out that the recent stabilization of retail sales was mainly due to the fact that the retail industry has turned away from the bottom, and sales figures have improved markedly. This has caused retailers to increase their desire for loyalty compared to last year and the current urban Ji shop has also decreased. In addition, the overall property market has been buoyant recently. The increase in residential prices has been very high, and commercial buildings have been the focus of investment. In contrast, the increase in the price of shops has lagged behind, and investors have therefore been revisited. Lu Shi pointed out that the main decline in shop rent came from the first-line street in the core area, while the rent in the people’s livelihood area was quite stable. It is therefore expected that the total number of shops will win the previous year. It is worth noting that in the district, the priority given to the Hong Kong and To Kwa Wan districts with the concept of the sand-centre line should be given priority.