Causeway Bay Paved City vacancy rate reduction
Causeway Bay ground floor market has always been regarded as the benchmark for the city, the store vacancy rate is now only 4.4%, compared with the same period last year decreased by 2.3 percentage points; vacant number of shops decreased by more than three percent year on year. The industry pointed out that the recent rebound in the retail market in Hong Kong, coupled with the softening of the landlord’s attitude, has continued to decline in the number of Yipu districts, and the number of short-selling cases has dropped from the past.
In June this year, there were about 57 cases of Yipu in Causeway Bay, a substantial decrease of 33.7% from 86 in the same period last year and 17.4% from 69 in December last year. The vacancy rate in the first half of the Causeway Bay area was 4.4%, down by 2.3 percentage points and 0.9 percentage points respectively from 6.7% in June and 5.3% in December.
The owner of the rent is softened
The number of vacant berths in Causeway Bay has continued to decrease and there are signs of declining short-selling cases. Among them, Enping Road 44 to 48 underground 1 and 2 shop, after two and a half years after the short break, in May this year, the Italian underwear brand Calzedonia rented two years, the monthly rent of 300,000 yuan, rent and 10 years Before the same. However, this year also recorded a small amount of short-term cases, including the earlier by the Lee is a short-term rental shop Russell Street No. 59 underground G shop, in March this year to continue to rent short bays in the form of fashion stores, monthly 600,000 yuan , Compared with the previous monthly rent of 500,000 yuan slightly up 20%.
“The reduction in the number of cypresses in Causeway Bay can be summed up for two reasons: the landlord’s attitude has been softened and the retail trade has stabilized.” During the period from 2012 to 2013, the peak area of the core area reached its peak, but the number of passengers decreased and the consumption weakened. The retail industry continued to slump, and many tenants ended their lease or rent. The owners less than the market rate of less than the market situation, resulting in Jichen emerged. At present, the owners generally accept the rent down, so the price is more flexible than in the past.
Retail market performance is stable
In terms of rents, there is still room for adjustment in the Causeway Bay area. Recently, there is a Hong Kong underwear brand Baoru Si, with a monthly lease of about 300,000 yuan to rent Enping Road 17, underground shop A, the shop area of about 731 square feet, about 410 yuan lease. Compared with the former tenant international cosmetics brand Estee Lauder 900,000 yuan rent, a substantial reduction of 67%.
Mr Cheung pointed out that although retail outlets were no longer prosperous, they would be allowed to prove that the retail market in Hong Kong was still healthy. In addition, rents are also favorable for local brand development. He explained that Causeway Bay quality shops in the past for foreign brands to compete for the land, compared to the local brand, less leasing capacity, hard to find heart water shop. With the rent in the area down, which means that the local brand can also be a cup of color, earlier local chain cake shop Donghai Tang on a monthly rent of 138,000 yuan, opened a branch in the Causeway Bay area, is expected in the second half of the city market prospects.