According to agents, Citibank recently renewed its 7,500-square-foot branch lease in Causeway Bay for HK $ 940,000 per month until September 2025. This is 35% lower than previous contracts that ended in May 2022.
Cynthia Ng, Head of Retail Services at Koreas, said: She added that several other banks are also considering moving to top-notch high streets.
According to JLL, new entrants from overseas leased 47% more retail space year-on-year in the first half of the year, with 60% of the space occupied by restaurants.
Singapore-based Flash Coffee, which entered Hong Kong last September, has opened nine stores by March. Backed by Rocket Internet and technology investment platform White Star Capital, Flash Coffee is eager to open 50 stores in the city by the end of this year, said Jonathan Zao, managing director of Hong Kong. .. Position March.
According to Colliers’ Ng, the second batch of consumer voucher distributions starting August 7th will help promote retail store sentiment and may help promote store leasing activities. She added that domestic consumption is key as the tourism outlook remains uncertain amid travel restrictions and restraint on cross-border movement.
Luxury retailers continue to recover from the slowdown in Hong Kong’s economic activity and the shortage of tourists. Last week, British fashion house Burberry closed a three-story store in Canton Road, Tsim Sha Tsui, due to the harsh market environment in the midst of Covid-19. Inside Retail Asia..
Simon Smith, Head of Research and Consulting, Savills’ Asia Pacific region, said: He added that retailers can be affected by rising interest rates, inflation, and stock market volatility, which can affect discretionary consumer spending.
Still, market observers expect retail rents to rise in the second half of the year.
Korea’s Ng expects more F & B brands to enter the market, along with supermarkets, family life and leisure, as local consumption is key.
“If there is no more serious pandemic for the rest of 2022, we expect annual retail rents to recover by 5%.”