More prime store sites on Canton Road in Tsim Sha Tsui are being left vacant amid a lackluster retail outlook that is expected to further weigh on occupancy rates, the Hong Kong Economic Journal reports.
Rents could slide a further 10 percent, it said.
A space that was previously leased to Emperor Watch and Jewellery Ltd. (00887.HK) remains unoccupied even after the landlord lowered the asking rent 20 percent.
The site, now the second empty one on Canton Road, occupies 1,500 square feet and is listed at a monthly rent of HK$1.2 million (US$150,000).
The luxury watch company reportedly paid a monthly rent of HK$1.5 million starting in 2014, when the rent was raised 50 percent from HK$1 million, which was 80 percent higher than in the preceding lease, which ended in 2011.
More vacancies are expected when leases of several high-end stores end in April and May, the report said, citing market sources.
Centaline Commercial chief operations officer Stanley Poon expects that the rents at core retail store spaces in the district, mainly those leased to luxury brands, will decline a further 10 percent in the first half of this year.
[Chinese version 中文版]
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