Retailers expand prudent

Under the unclear market conditions, it is expected that the expansion of retailers will remain relatively cautious this year. The rents are expected to be only rampant. The benefit of the infrastructure areas such as Jordan and Tsim Sha Tsui is more favourable.

Benefiting from infrastructure, Tsim Sha Tsui, Jordan

In the first half of last year, the retail sales in Hong Kong recovered significantly. Both the number of visitors to Hong Kong and the consumption figures rose. The second half of the year saw a significant slowdown. The Census and Statistics Department announced the retail consumption data for November last year. The sales value was 39.2 billion yuan, an increase of 1.4% year-on-year. %, while the revised sales value in October increased by 6% year-on-year. The sales growth in November decreased by 4.6 percentage points month-on-month, reflecting a slowdown in growth.

Lian Zhihao, executive director of CB Richard Ellis Hong Kong Consulting and Trading Services (Retail), believes that under the influence of the Sino-US trade war, there will be some impact on the consumer confidence of the public and tourists. The retailers have not dared to make substantial branch expansions in response to market conditions. I believe that the retail market conditions in the first half of this year are only stable.

Tenants said that he said that retailers such as pharmacies and personal care products are relatively active in recent months. It is expected that retail sales will continue to be low-priced. In terms of renting, recently, Russell Street in Causeway Bay recorded a skincare store with a monthly rent of 700,000. The rent was slightly lower than that of two years ago. Lian Zhihao believes that the rent in the core area has been substantially adjusted in the past few years. To a reasonable level, and in the recent core area rentals, the new rent and the old rent have not changed much, reflecting that the rent has been set, and this year is expected to develop.

The construction of the Hong Kong-Zhuhai-Macau Bridge and the high-speed rail was launched at the end of the year. The Chief Executive of the Hong Kong-Guangzhou Industrial and Commercial Services Department, Mr Wong Hon-kwan, said that since the opening of the infrastructure, the number of visitors has increased significantly. Some districts such as Jordan, Tsim Sha Tsui, Tuen Mun, Yuen Long and Tsuen Wan. The crowds are crowded. He believes that the price of the rent in the relevant area is strong this year.