Date
24 September 2017
The retail slump has been hurting the property leasing business at Empire Court on Hysan Avenue. Photo: HKEJ
The retail slump has been hurting the property leasing business at Empire Court on Hysan Avenue. Photo: HKEJ

Dim retail outlook casts shadow on retail property deals

A shop along Hysan Avenue in Causeway Bay has been leased out for HK$400,000 a month after the owner slashed the asking price by more than 30 percent, the Hong Kong Economic Journal reported on Friday.

The shop at Empire Court has been vacated for almost a year amid a sluggish retail environment in the city.

The shop occupies a gross floor area of 1,446 square feet. The total rent translates into HK$276.6 per square foot, which matches prevailing rates in the area, the report said, citing market sources.

But another shop on Hennessy Road, occupied by luxury watch brand Breitling, saw a 10 percent increase in monthly rent when the lease contract was renewed recently.

Meanwhile, a row of shops along Percival Street owned by investor Liu Kwun attracted only two tenders of interest with the offer prices way below expectations.

As a result, Liu has withdrawn the properties from the market and opted to negotiate with interested consortiums.

The slump has affected the leasing volume in Central, Causeway Bay, Tsim Sha Tsiu and Mong Kok.

Central has been the worst-hit district with leasing transactions falling 23 percent to 83 deals, according to data from Hong Kong Property Services (IC&I) Ltd.

[Chinese version中文版] 

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