The Sino-US trade war continued, coupled with the unstable social environment, the retail store and commercial office market conditions deteriorated significantly
At least three tenants in the major streets of Yuen Long were required to reduce their rents. Among them, there were individual shops in the Yuen Long section of Castle Peak Road. Before the tenancy was over, the owners were successfully reduced by 15% for a period of three months. As of the end of this month, only one of the top 50 commercial buildings recorded a single transaction, a record low since the record.
The Yuen Long section of Castle Peak Road, commonly known as Yuen Long Road, is the busiest street in the area
The retail atmosphere was sluggish, and the business in non-core areas was frustrated and began to show rental pressure. According to the source, the above-mentioned shop area is about 2,000 square feet. It is now rented by a coffee shop for more than 100,000 yuan per month. Although the lease period is one year, the tenant requested the landlord to temporarily reduce the rent from August to October. The owner agreed.
Education roads shop down and rent one or two
A shop in Education Road in the district has an area of about 500 square meters. Since the lease period will expire at the end of this month, the tenants in recent days require the owners to lower the rent first, then decide whether to renew the contract, and finally renew the rent at less than RMB 200,000 per month. In two years, the old rent fell by about 12%.
Rent reduction in retail shops in Yuen Long District
There are also rent-reduction cases on Kangle Road. A shop rented by the catering industry in the street has an area of about 1,000 square feet. Recently, the owners have proposed to reduce the rent and successfully renew the rent for about $110,000 per month for two years. The old tenancy agreement 13 Ten thousand yuan, that is, the new rent is about 15% lower than the old rent.
Huang Peiquan, senior regional business director of the Central Plains (Industrial and Commercial) shop, said that the market conditions in recent months were not good. Apart from directly affecting the business accidents, it was more serious to crack down on consumer spending. The businesses in the catering, pharmacy and watch and jewelry stores were frustrated. He also revealed that due to the current situation, individual tenants and owners have begun to communicate more and try to negotiate to lower rents to tide over the difficulties.
The commercial building is in trouble. This month is only 1
In fact, in the middle of this month, individual shopping malls have also begun to adjust their rent to assist merchants. Earlier, the D2 Place shopping mall in Lai Chi Kok announced that it would provide retailers in Phase I and Phase II shopping arcades with a 20% reduction in rents in August, involving a seven-figure amount. The “minibus king” Ma Yamu’s son, Ma Qiaosheng, also revealed that some of the merchants in the rental shops indicated that they had operational difficulties and requested to delay the payment of rent for one to two weeks.
In addition to the decline in the market, the office market is also facing difficulties. According to data from the Research Department of the Industrial and Commercial Services Bureau of the United States, as of this Tuesday, the market only recorded the sale and purchase of the Crown Palace from Kwun Tong. The bank’s chief operating officer and director of the commercial department, Weng Hongxiang, pointed out that the extremely sparse trade in commercial buildings was quite rare, even worse than the SARS and the 2008 financial tsunami in 2003.
Impaired investment confidence, buyers wait and see
He believes that Hong Kong is facing internal and external problems, which has made investors’ confidence in the prospects of commercial buildings impaired. Many prospective buyers are holding a wait-and-see attitude. However, some buyers may be able to depreciate at this time, but because the price reduction of the owners is still small, the buyers and sellers are in a situation of sawing, resulting in a low level of trading volume.