Watch Shop Renews Russell Street Sale Reduced Price by 33%
The first-line street pavilion in the core area is still undergoing adjustment. According to sources, a watch shop has continued to rent a shop on Russell Street in Causeway Bay for about $1 million a month. The rent has fallen by about 33% from three years ago.
The ground floor of the Golden Chaoyang Centre, 38 Russell Street, Causeway Bay, covers an area of approximately 795 square feet and is currently leased by the Swatch Group’s radar watch. The brand leased shops for 1.5 million yuan per month in 2015 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.
The shop is considered to be a prime location on Russell Street, in the middle of the street, facing Times Square, with a thriving crowd. The berth area is also relatively large, so it is the brand’s rush to rent the shop during the peak retail period. Looking up the data, in 2009 the watch brand TAG Heuer rented the property at a monthly rental of about RMB 980,000. At the peak of retail sales in 2012, the monthly rent increased to RMB 2.5 million, and the rental fee was RMB 3,145. Compared with the latest rent, the peak period fell by 60%. In fact, in the recent cases of new leases and renewal of rents on the first-line street in Hong Kong’s retail core area, shop rents are still falling, but the decline has gradually narrowed.
Yuen Long Ford Street Shop sells 58,000
Regarding the sales of berths, the sources stated that on the ground floor of No. 18-36 Ford Street, Yuen Long, the area was about 1,000 square feet, which was about 58.5 million yuan, and the price was about 58,000 yuan. The shop is currently rented by the electrical shop at $70,000 per month. The return rate is about 1.4%. According to another source, the ground floor of No. 140 Yongle Street, Sheung Wan, covers an area of about 1,200 square feet and is sold for about 30.8 million yuan, with a price of about 26,000 yuan.