16/8/2017-8

The core area of ​​the rent is expected to see the decline

The core area of ​​the shop rent, re-recorded a substantial adjustment of the case, including Mong Kok Sai Yeung Choi Wan Street property to 100 million rental, 3 years down 4 percent.

However, the industry believes that the rental business has been completed, the core area of ​​the shop rent is expected to breath, the average annual rent reduction, will be narrowed to 5%.

Mainland open free exercise once stimulated the rapid increase in rent, which 2012 to 2013 during the core area of ​​rent rose to the peak level. However, after the mainland passenger consumption patterns change, from luxury to popular consumption, retail business business is not ideal, from the core area of ​​the shop rent, entered the adjustment period, has still not bottomed out.

In fact, the rent has been adjusted for 2, 3 years, and recently renewed rent or new lease of the shop, the old rent three or four years ago, the peak level. And then the astronomical rented by the duplex shop, the most obvious decline in rents. Including a total area of ​​about 4,800 square feet from 1L to 1M in Mong Kok South Street, which is leased by Chow Tai Fook in 2014 to $ 1.8 million per month. However, after the lease expires, Chow Tai Fook has not renewed its rent.

Sai Yeung Choi South Street, the whole building 3 years or rent 4 into

The latest rental of the company in the mobile company to rent 1 million yuan on rent, rents fell 800,000 yuan, the rate of up to 4 percent. And Chow Tai Fook in recent years, no longer continue to rent the core area of ​​the shop, including rented more than 10 years of Tsim Sha Tsui Golden Island holiday hotel duplex shop, the monthly rent of 400 million, the lease expires Chow Tai Fook never renew, for nearly a year more than the district Turn off the third branch.

In addition, Causeway Bay Qidao Road on the 16th underground part of the second floor, an area of ​​3,400 square feet, by the Prince jewelry watches to 1.1 million yuan to renew, 3 years ago, the old lease rent 3 million yuan, rent reduction of 1.9 million yuan, 63%.

However, the core shop expensive rental business, after the end of the lease, the core area of ​​the shop rent adjustment is close to completion. Colliers International released the latest 2017 second quarter report pointed out that the mid-range brand gradually replaced the luxury brand, stationed in the core area. Large shops are still vacant, the main areas of commercial rents continue to be pressure, is expected to 2017 annual decline of 5%, compared with last year’s forecast of 10% narrowing.

Individual core area vacancy rate drop

In addition, individual core areas of the vacancy rate fell. According to Hong Kong and Hong Kong shops, Mong Kok recorded a vacancy rate of 7% in July, down from 8.3% in the previous year and the lowest in the four core districts, while the vacancy rate in Mong Kok dropped to 4.9%. As for the Central vacancy rate in July was 8.1%, compared with 10% last year to reduce.