by winston » Tue Oct 06, 2015 4:34 am
Retail sales fall as rents are reduced
Total retail sales in July and August slumped 4.2 percent from a year earlier while watch and jewelry sales tumbled 7 percent in the same period, a report from CBRE Hong Kong said.
The weak retail sentiment is expected to continue, hitting prime areas such as Causeway Bay the hardest, according to CBRE.
CBRE said many tenants in core shopping districts have seen their rents reduced when extending their leases, but some businesses have chosen to close.
Meanwhile, another report by Credit Suisse said store rents have fallen at least 30 percent since January and they are unlikely to rebound this year.
But CBRE said medium-end retailers who rely on locals, not mainlanders, will provide support for the rental market.
Several of these mid-range retailers, such as fitness clubs and sports brands, are also expanding their logistics networks.
However this meant warehouse occupancy and rents rose in the third quarter.
Meanwhile, overall office vacancies fell to 3.2 percent from 3.6 percent in the third quarter.
In Central, office vacancies fell to 1 percent from 1.7 percent.
Source: The Standard
It's all about "how much you made when you were right" & "how little you lost when you were wrong"