Demand flat for Hong Kong retail real estate
The Hong Kong retail real estate market remains flat, according to the first quarter 2017 RICS (Royal Institution of Chartered Surveyors) Hong Kong Commercial Property Monitor.
Demand for properties is static, which will in turn continue to put pressure on rents, the report said.
“[In] retail, primary markets will suffer a downward adjustment as businesses, such as luxury jewellery and watch retailers, continue to experience a consolidation stage,” commented Frank Wong MRICS, RICS Hong Kong external affairs and public concerns committee member.
In contrast, rentals and sales in the office market remain buoyant and high demand for prime office space has led to record-high prices, Wong said.
The RICS Hong Kong Commercial Property Monitor is a quarterly sentiment index tracking trends in the commercial property market. It is an indicator for global investment and occupier markets.
The RICS did not reveal any specific rate of decline, but its comments follow anecdotal feedback from within the retail real estate sector, and despite indications the market is recovering, underlined by March’s increase in retail sales, including an 8.4 per cent rise in the watch and jewellery sector.
The RICS promotes professional qualifications and standards in the development and management of land, real estate, construction and infrastructure, accrediting 125,000 registered professionals on quality assurance.