This year, the consumer market has weakened. In addition to the sharp drop in rents on main street shops, some have to cut prices for sale
According to the statistics of this newspaper, more than 30 street erosion concession cases were recorded in 19 years, which is expected to be the highest year ever. Some investors expect that the market situation will not be optimistic next year, and I believe that the number of cases of hand loss will double.
Cases of street erosion in this year
Lockhart Road Shop loses 56%
Wan Chai District recorded the most loss concessions, with at least 7 cases, ranging from 4.5 to 56.3%. A small shop with an area of about 95 square feet, No. 1 Lockhart Road in the district, changed hands for 3.98 million yuan in August, which is about 5.12 million yuan less than the purchase price of 9.1 million yuan in 2012, making it the largest street shop in recent years. The current site is now leased by a small real estate company for about 8,500 yuan per month, with the lease term beginning at the beginning of the year. Similar cases in the rest of the district were distributed on St. Francis Street, Ji’an Street, Wan Chai Road, Morrison Hill Road, and West Street.
Another severely affected area is Sham Shui Po. About 4 cases were recorded throughout the year, with depreciation ranging from 21.6 to 42%. Three of them were located on Apliu Street, with an average eclipse of about 40%. One of the double-floor shops connected to the loft sold 14.5 million yuan, which was 10.5 million yuan or 42% lower than the purchase price.
The situation in Kowloon’s core shopping districts is similar. In Tsim Sha Tsui, Jordan, Yau Ma Tei and Mong Kok, a total of at least 9 street concessions have been recorded, with price reductions ranging from 4.1 to 41.5%. The ground floor of Double Parkes Street in Jordan changed hands for 14.5 million yuan in May, a depreciation of 10.3 million yuan compared with the purchase price of 24.8 million yuan in 2013.
Falling more than two to three years
Li Genxing, founder and chief executive officer of Shenghui Retail Store Fund, said that this year has been the year with the most ransom concessions, and many of the damaged shops were bought during the peak retail period of 12 to 14 years. At the same time, most of them are located in tourist areas and a small amount are distributed in people’s livelihood areas, but the common point is that they are mostly shops with a small area and a low price.
He also expected that the market in the next two to three years will face a long downturn, and the second quarter to the third quarter of next year may have the opportunity to enter the market, “settled goods,” depending on market conditions, the price will be 10-50%.