Hysan Development on a mission to make Causeway Bay Hong Kong’s premier retail destination
| Text : Elizabeth Kerr | Photo : Hysan Development |
Hong Kong is a shopping city and has been for some years. Lack of a sales tax has made it a haven for luxury shoppers the world over, never mind techno-geeks and those among us fond of jewellery and watches. One of the city’s preferred locations for active buying and browsing alike is easily Causeway Bay. It’s also one of the more diverse of the SAR’s many densely packed prime districts, balancing a mixture of residences and offices to go along with the retailing it’s so renowned for. High end luxury brands like Omega and Chanel butt up against local independent boutiques carrying obscure haute couture as well as home-grown labels; mass market malls housing Zara, Muji and Giordano sit around the corner from complexes with Dior and Vivienne Westwood. There are two major home furnishings shops, four major supermarkets and that most rare beast in Hong Kong — actual street shopping. Did we mention there’s a park?
These are some of the factors that make Causeway Bay so popular with local residents and tourists alike and it won’t stop anytime soon. As CB Richard Ellis’s senior director of retail services Joe Lin points out, Causeway Bay has a supply problem and everyone entering Hong Kong’s retail market wants to be there. “There haven’t been any new big malls in ten years in Causeway Bay, so retailers will like to hear about new projects … 500 Hennessy Road could become a focus for major retailers.”
He’s supported by research from Colliers International, whose last quarterly report for Hong Kong suggested the traditional districts will retain leasing focus (Tsim Sha Tsui, Central and Mongkok are the others), going on to point out American retailing behemoth
Forever 21 took 12,000 square feet of space in CWB last year. Buoyed by rising tourist arrivals and increasing consumer confidence at home, “Both Causeway Bay and Central saw a rental growth of 5.4 percent quarter-on-quarter in November 2010,” Colliers said. In the period between August and October last year, retailers tallied up almost $80 billion worth of goods — an 18.7 percent increase over the same period the year before. Even restaurants had a banner season, posting $21 billion in receipts. Hey, all that shopping makes you hungry.
Also arriving soon in Causeway Bay are a flagship for I.T and a boutique for Dutch label G-Star Raw. They’re moving into One Hysan Avenue and the Leighton Centre, and are a small part of Hysan Development’s rejuvenation of its retail portfolio. Hysan has been making waves over its redevelopment of the Hennessy Centre, soon to re-emerge as Hysan Place, but the Causeway Bay property giant isn’t stopping there. The juicing of the Leighton/Hysan intersection, along with the massive eye-catcher across from Sogo, is part of a larger, long-term asset enhancement plan announced last November.
“As a progressive landlord, Hysan is pursuing an asset enhancement programme that will further invigorate the Hysan Avenue and Leighton Road junction, including the commercial sites of Leighton Centre and One Hysan Avenue,” said Chief Executive Officer Gerry Yim in a press statement. “The renovation works underway there mark the beginning of a process that will transform the vicinity into an even more exciting, fashionable shopping district, and continue the historical evolution of the junction as a celebrated entertainment and retail centre in Hong Kong.”
The streets that wind in and around the major shopping centres — the largest being The Lee Gardens, One Hysan, Sogo, Times Square, and the World Trade Centre — are dotted with the aforementioned street shopping that otherwise can only be found across the harbour in Mongkok. Ground floor retailing is the ideal for major international retailers, and most want to hold out for space at street level.The streets that wind in and around the major shopping centres — the largest being The Lee Gardens, One Hysan, Sogo, Times Square, and the World Trade Centre — are dotted with the aforementioned street shopping that otherwise can only be found across the harbour in Mongkok. Ground floor retailing is the ideal for major international retailers, and most want to hold out for space at street level.
Part of Hysan’s plans for the Leighton Centre include revamping 26,000 square feet of its podium level and come completion date in the middle of this year, Leighton Road will boast 15 new storefront properties. “The addition of street-level stores at Leighton Centre is a very significant improvement for the popular shopping area. This will provide shoppers with immediate access to the stores and allow retail tenants to utilise the large facades that the new layout will accommodate, which is very limited in Causeway Bay,” Yim reiterated.
G-Star Raw will be among the first to open up in the new and improved Leighton Centre (it’s committed to 7,000 square feet, making it the largest G-Star shop in the world) and over at One Hysan Avenue, I.T has taken a whopping 30,000 square feet on four floors that will dominate the corner. As Cissy Chan, Hysan’s retail portfolio and marketing directed stated, “The decision of global retailers I.T and G-Star Raw to lease space at One Hysan Avenue and Leighton Centre is a demonstration of Causeway Bay’s international repute as a leading destination for fashionable shopping.”
It could also be lucrative for Hysan, as Colliers predicted retail rents to increase up to 20 percent over the next year in addition to the 5 percent from the end of last year.
Only time will tell if Causeway Bay will remain a “leading destination” for all as Hysan put it. High rents have the potential to drive out the little guys that give the district as much of its charm as the recognisable brand names do. The numbers suggest it will; Colliers figures don’t separate local shopping from that of visitors and CWB’s streets are as crowded on random weekends as they are around major holidays. In the meantime Hysan is going a long way to ensure it’s the first direction we all head when we want a swanky new dress. Watch your back, Central.
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