4/4/2018-1

Telecommunications companies are competitive and rents are high

Mobile phone penetration in Hong Kong is high. In the face of a huge market, the telecommunications industry is increasingly competitive. Telecommunications companies are often willing to enter advantageous shops with high rents. The market has even recorded cases of renewal of telecommunications companies and the rents have remained high.

Tsim Sha Tsui Cameron Road Shop Monthly Rental 300,000

Shop A2, G/F, 7 to 7B, Cameron Road, Tsim Sha Tsui, with an area of ​​approximately 450 square feet. The paving area is adjacent to the entrance and exit of the MTR station. It is the main route from east to west for the Tsim Sha Tsui traffic. Therefore, it has attracted many years of lease from telecommunications companies. Recently, it rented a monthly rent of RMB 300,000 and rented it at a rate of RMB 667, which is similar to that of gold jewelry stores. This shows that the telecommunications industry has a very strong leasehold.

In addition, there is a penthouse with a total area of ​​1,200 square feet at Shop No. J1, Lai Wan Building, 33-55 Shau Kei Wan Road, Sai Wan Ho. It belongs to the traditional busy section of the area. The telecommunications company leases about RMB 86,000 and the lease costs about RMB 72.

Although profits have continued to decline due to price cuts and promotions among telecom companies in recent years, according to the statistics of the Census and Statistics Department, 5.5 million people in Hong Kong hold smart phones and the smartphone penetration rate reaches 85.8%. This shows that the market is quite large. The telecommunications company is still optimistic about the prospects and is therefore willing to lease a favourable position at a high rent. It is believed that it will play a positive role in stabilizing the rental of shops.