Tsim Sha Tsui retail rents fell 7.5 per cent quarter-on-quarter according to CBRE HK Commercial Real Estate MarketView Preview for the first quarter of 2016.
That puts the Kowloon suburb at the top of the rankings for the great retail rent decline in the territory so far this year.
CBRE says with retail sales remaining “gloomy” during the festive season – retail sales fell 13.6 per cent year-on-year in the first two months of this year – mid-range retailers continued to be the principal drivers of demand for space as luxury retailers retrenched.
Watch and jewellery sales plunged by 24.2 per cent year-on-year in January and February, however CBRE noted that “certain upmarket jewellery brands” were still expanding during the quarter.
Domestic consumption was partially affected by the recent volatility in stock market and home prices, the real estate specialist observed.