Hong Kong mall rents are holding their own – but rents in core retail high street districts fell further in the third quarter according to CBRE.
In its latest quarterly market update, CBRE Hong Kong says the overall retail property market “remained gloomy” with the exception of the food and beverage sector and the lifestyle sector.
“Rents in shopping malls were generally stable,” the update concluded.
Against a background of continuing retail sales decline – a 9.1 per cent year-on-year fall for July and August combined, driven predominantly by the luxury sector – demand for retail space was inclined to premises with monthly rentals of HK$1 million and below.
“F&B sales remained strong. Lifestyle trades and restaurants continued to be relatively active in the third quarter,” reported CBRE Hong Kong.
“Overall rents in the four core retail districts further declined by 2.4 per cent year-on-year in the third quarter, with those in Tsim Sha Tsui falling the most, by 3.8 per cent.”
CBRE will release a more detailed set of data in mid-October.