Core rent this year expected a slight decline of 5% to 10%
Last year, the core area of the city saw a significant drop in rent. Looking ahead to this year, based on the fact that there are still many JIU shops that need to be digested and oversupplied in the market, it is estimated that the core leasing will continue to be adjusted this year, ranging from 5% to 10%. The market will be dominated by popular brands, restaurants and experiential consumer industries.
Over the past year, the renewal or renewal of the core area has been renewed. The rent generally dropped by more than 50% over the peak of 3 years ago. Although it is being absorbed, many major thoroughfares in the core area, the core streets of Causeway Bay Lockhart Road and Percival Street, as well as Queen’s Road Central, still see a lot of JIU shop, part of the shop posted a notice of tenancy, some of the short tenants leased, these shops are to be looking for long tenants, and, before and after the Lunar New Year Short-term off-season, I believe these shops can not be absorbed between the moment.
In fact, the key to oversupply is oversupply. At present, there is a clear oversupply of the core shops. It is estimated that this year, the shops will be digested and no rent increases have been seen.
Retail data reflect the rental decline
According to the statistics of the Department’s retail sales, the total retail sales in the first 11 months of last year increased by 1.8% as compared with the same period in 2016, that is, an increase of $ 2 in sales of $ 100. Such an increase did not give enough impetus to the purchase and rent of shops. Overall retail sales in November last year rose 3% over October, while a 7.5% increase over the same month in 2016. This shows that the overall retail industry is still growing at a modest rate. Looking back at the past years, due to the thriving free trade, mainland tourists came to Hong Kong for big shopping. As can be seen from the statistics, in the peak period of 2013, the luxury goods consumption in that year was as high as 118 billion yuan. However, until 2017, In the past, consumption of luxury goods plunged to 65 billion yuan, up by 45%. The figures reflect the impact of shop-renting and the decline it should have recorded.
In the Mainland, apart from the mainland government’s efforts to fight corruption and the luxury of buying gifts, the mainland tourists are becoming more and more familiar with foreign countries and found that Hong Kong is not a famous place of origin. In addition, many countries have visa-free services, Their shopping destinations have been relocated from Hong Kong overseas.
In recent years, the market has successively recorded the popularity of brands, including cosmetics chain stores and brand apparel lease cases. This trend is worth noting. The catering industry, which is not affected by online shopping, has even become so popular with experiential consumption. To some extent, these newly popular industries, Market prospects around.
Hong Kong’s restaurants are diversified and their food quality is high. It is advisable that hygiene standards are among the highest in Southeast Asia. Hong Kong owns the best logistics system in the world. The supply of ingredients from all over the world is so good that the reputation of the Food Paradise can stand the test. In addition, Different audio facilities and live effects, to attract young consumers. Also, as the population ages, the demand for nursing homes is also on the rise.
Some time ago, retailers treated online shopping as a scourge and considered it would greatly disrupt physical consumption. Later, they found that the combination of online and offline services would help strengthen the retail business. If there is an online shopping support in a physical store, shopping activities Not limited to a certain time and space, you can play unlimited. Although online shopping service is convenient, but for some industries such as cosmetics sales, always try the most real field, so buyers rest assured.
Over the years, rent-sharing in Minsheng areas has not directly benefited from free exercise and did not follow the market conditions. It is believed that this year’s performance will be relatively stable and livelihood areas will provide the necessary living necessities. Even if residents’ incomes have increased substantially, their basic daily living expenses will not As a result, there will be an explosive increase in demand. Therefore, there will not be a large-scale demand for shops. This is also why the livelihood shop rents are more stable.