'Occupy Central' cause the retail market have double hit
Hong Kong's Wen Wei Po (Reporter So Hung Chung)The light wind blowing on the retail market and the outbreak of 'Occupy Central' action over months, the shops in'occupied territories' bear the brunt,following there are jewelry retailers have moved to the shop after deployment in the earlier days,there are also owners of the shops in Hysan Avenue street Road Street cut up to 25% of the rents in order to grab the tenant; Meanwhile,the market has also reflected the Admiralty office tenants have reflected rent reduction requirements to the owners.Acting industry generally believe that if the political movement sustained wil be shaken the confidence of owners and tenants undoubtedly.
Market bearish the outlook of the retail market,the attitude of the owners of core retail area in Causeway Bay begins to soften and the street shops which located in some distance from the street of the area of 'Occupy Central' have also appeared split rent.Hong Kong home Grand Pu Assistant Sales Director Lam Wai Man said yesterday that Causeway Bay Shop No. 3-7,Empire-Court,with ground floor area of approximately 1,500 feet, even 800 ft loft,the owner of the original call to rent HKD $600,000,the recent bearish market conditions to reduce the rent to HKD $450,000,a reduction of 25%.The former tenant for boutiques shop, the shops were located in the junction of Leighton Road and Hysan Road,there are Grade A office buildings and shopping centers around,such as Lee Theatre,Leighton Centre.
The tenants moved out and the empty shops in Causeway bay have increased
The empty shops in Causeway bay have emerged,Lam Wai Man pointed out that the consumption patterns of mainland visitors change,have the impact on the local retail market, as the recent 'Occupy Central'action, but no doubt, cause the street shops which located in the 'occupied territories bearing the brunt,so the political environment is the first considerations of the owners and tenants undoubtedly,the current bargaining ranged from 5-10%.
In fact, the action of 'Occupy Central' cause some individual shops planned to move out, Luk Fook Holdings said it is restructuring Causeway Bay shop in the late of last month,the business affected by 'Occupy Central',2 shops which located in Lee Garden Road and Kai Chiu Road,Causeway Bay decided not to further renewal and intends to set up another two branches in the region as an alternative, the rent is relatively low, which are located in No.499 Hennessy Road and No.67 Percival Street ground floor and it is expected to open next year.
Except for the political factors,mainland visitors consumption patterns change in recent years,but also about the retail market conditions. Knight Frank, senior director and head of valuation and consulting Lam Man Ho refers to the core area in recent years, such as Central, Causeway Bay, Mong Kok street, sale and leasing, slightly less in recent years,mainly due to changes in customer spending patterns mainland,no longer focused on the high consumer products,in this case, the owners of this year's bargaining leasing space have widened. On the other hand, there are many uncertainties in the market,the investors which with watching atmosphere grows,also wasn't in a hurry to enter the market soon,so it cause the shop market tradings continued stalemate.
The tenants of admiralty office request for rent reduction
On the other hand,some market participants to reflect,there are tenants of admiralty office have been affected by 'Occupy Central',require owners to reduce rents.Foreign firms generally believe that if 'Occupy Central'sustained, will shake confidence of the owners and tenants.Jones Lang LaSalle regional director of the Ministry of Commerce Yim Wai Ching said mainly related to commercial buildings such as the Admiralty Centre and Lippo Centre ownership has been split.Repeatedly pass through the perimeter bearish news,some individual tenants of Central office to consider the inconvenience which cause by the action of Occupy Central',has considered to move out the core area recently,move eastward toward Wan Chai, Causeway Bay and other places.
