Causeway Bay rents soar
Retail rental rates in Hong Kong’s Causeway Bay have soared 35 per cent year on year making it the most expensive main street location in the Chinese SAR.
Data from Cushman and Wakefield’s Marketbeat for the second quarter of 2012 shows prime retail rents have reached HK$1700 per square foot per month in Causeway Bay, with nearby Central reaching $1200, a 14.3 per cent increase year on year.
Across the harbour, Tsim Sha Tsui rents were almost stagnant, rising just 3.1 per cent year on year to $1000, but Mongkok rose 15.7 per cent to $700.
In recent transactions, Longines has renewed its lease in Russell St, Causeway Bay for 1000sqft at HK$1.5 million per month and Georgio Armani signed up for 15,000sqft at Gateway Tower in Tsim Sha Tsui at over 10 million per month.
Rental rates in shopping malls are considerably less. Data from various Hong Kong media shows Landmark North in Sheung Shui to be between $150 and $420 per sqft, at the newly opened Hysan Place in Causeway Bay $150 and at Megabox in Kowloon Bay, between $130 and $150.
As earlier reported on InsideRetail.Asia, skyrocketing rents in Central and Causeway Bay are prompting many mid range brands to seek alternative space in malls located at the likes of Tai Po, Yuen Long, Tuen Mun and Sheung Shui.
Rental rates are being pressured upwards by the arrival of name international brands seeking prime locations for brand building flagships.
HK$1000 equals approximately US$129.