In the core area, the price of the shop is difficult to reproduce.
Retail sales have improved slightly, and the number of Kyrgyzstan in the core area has decreased. However, it is believed that the rent will still be low, and the market conditions of the previous rents will be doubled.
In the retail areas such as Causeway Bay, Mong Kok and Tsim Sha Tsui, it can be observed that retail sales are quiet or bustling, and the number of Kwai Shops can also be reflected in the retail market conditions. The Midland Industrial and Commercial Store has recently conducted an investigation to count 156 streets in the four core districts of Hong Kong, with a total of 7,288 street shops, analyzing the number of shops and the types of merchants. A total of 408 stores were found in the four core districts, with a vacancy rate of 5.6%, which was the lowest since the record was recorded in 2016. It also fell 3.2 percentage points year-on-year.
Retail sales are slightly better. Owners are also willing to reduce rents.
In the past, the number of vacancies in Tsim Sha Tsui and Causeway Bay was the highest. The vacancy rate dropped to 6.4% and 8.1% respectively this year, down by 4.8 and 4 percentage points respectively year-on-year. In Mong Kok, a total of 117 JI shops were recorded in the district with a vacancy rate of 3.5%, the lowest among the four districts.
In the past two years, the number of Jipu has decreased. The first two reasons are the retail sales. The Census and Statistics Department announced that the total retail sales value in July rose by 7.8% year-on-year, lower than the previous month’s increase (11.9%). 38.9 billion yuan, a good performance. The value of sales of jewellery, watches and clocks and valuable gifts rose by 16.8%, and medicines and cosmetics rose by 12.7%. This year’s retail sales are better than last year. Local consumption is stable. I believe the increase is from the increase in mainland customers’ consumption in Hong Kong. It is true that during the May 1st Golden Week this year, the mainland passenger consumption was obviously satisfactory, and the hotel occupancy rate improved. Will definitely enhance the merchant’s interest in restarting the opening.
Second, the owners began to accept the actual rent reduction. At the time when the shop is the most sought-after, each shop can be robbed by multiple brands. The amount is naturally high, and the owners are certainly smiling. However, the market conditions are reversed, the tenants will immediately count, and some will decide to withdraw according to the market conditions. Most of the owner of the core area shop has strong holding power, and there is not much pressure to reduce the price. At that time, the retail market has not yet been accepted, and it is better to lose the shop. Over time, retail sales have not improved, and many shops have been in business for a year. The owners have only begun to realize that retail sales are not as good as before, and they are willing to accept a substantial reduction in rents. When the rent is adjusted to a relatively reasonable level, and the retail sales are improved, the retailer is willing to open a new shop, and the urban Jipu can absorb it.
The middle and lower price merchants are active, but the renting power is reduced.
The decrease in the number of shops, the active rentals, and the rebound in rents? After a three-year adjustment period, the rents in the core districts fell by at least 40% from the peak period, and the rents of individual shops fell by 6 to 70%. It is worth noting that there is a significant change in the merchant mix. According to the above report, retailers such as cosmetics and personal care stores account for 442 out of 7,000 shops, about 6%, which is higher than in the past. Sportswear, the most active retailer in the past two years, is not a luxury, but a low-priced retailer. Their rental capacity is difficult to compare with luxury goods. In the past, a 800-1,000-inch shop in the core area, watches and clocks. The monthly rent paid by the store can be as high as 1.5 to 2 million yuan.
Today, cosmetics, pharmacies, sportswear, renting capacity is more than 1 million yuan, so even if rented out, the rent is difficult to return to the peak several years ago. Therefore, the improvement of the core area rentals is only a change in the retail model. Passengers tend to rational consumption, and they no longer have to sweep their watches and jewels. Therefore, the rents are relatively stable, and the rent explosions in the past will not rise again.