Hysan Development Co. (00014.HK) expects to secure only 10-20 percent hike in rents on renewals of commercial property leasing contracts this year, the Hong Kong Economic Journal reported.
The projected rental hike compares with a 50 percent increase the company enjoyed last year, the paper noted.
The commercial property developer, however, remains upbeat on the prospects in Causeway Bay district where most of its projects are located.
Although Hysan acknowledges the fact that the retail market in Hong Kong cannot grow forever, the developer and landlord is optimistic about rental growth in prime locations such as Causeway bay, deputy chairman and chief executive Lau Siu-chuen was quoted as saying.
The overall sales revenue generated at Hysan’s retail premises was up 22 percent last year.
Mainland tourists have shown a shift in consumption pattern, with more people opting for mid-priced items such as apparel, rather than luxury goods like watches, according to Hysan officials.
The company says it won’t be affected much by any potential change in the government’s existing multiple-pass policy for individual mainland visitors.
Translation by Vey Wong [Chinese version中文版]
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