Empty shops ahead, says DTZ Hong Kong
In this article (5)
Higher vacancy rates in prime retail sites in Hong Kong are expected after the Chinese New Year holidays, reports property consultancy DTZ.
This could potentially lead to a 5 to 10 per cent drop in rental rates in the first half of this year, whereas rents are likely to rise for prime office space in the Central district.
Vacancy rates of prime storefronts in the city’s four major districts – Causeway Bay, Tsim Sha Tsui, Central and Mongkok – are in the 2.4 to 6.8 per cent range, says DTZ Hong Kong head of business space Kevin Lam.
He has told the Hong Kong Economic Journal that many short-term tenants will move out after the Chinese New Year.
Questions & Answers
Q.What is the anticipated impact of these higher vacancy rates on retail rental costs?
What is the anticipated impact of these higher vacancy rates on retail rental costs?
DTZ expects a potential 5 to 10 per cent drop in retail rental rates across Hong Kong during the first half of this year. This decline is specific to prime retail sites rather than other commercial properties.
Q.Which areas in Hong Kong are currently experiencing varying vacancy levels in prime storefronts?
Which areas in Hong Kong are currently experiencing varying vacancy levels in prime storefronts?
The four main districts, Causeway Bay, Tsim Sha Tsui, Central, and Mongkok, currently show prime storefront vacancy rates ranging from 2.4 to 6.8 per cent. These figures are according to DTZ Hong Kong.
Q.What reason has been given for the expected increase in vacant retail properties?
What reason has been given for the expected increase in vacant retail properties?
Kevin Lam, head of business space at DTZ Hong Kong, attributes the anticipated rise in vacancies to many short-term tenants planning to vacate their premises after the Chinese New Year period.
Q.Are all property rental rates expected to fall, or are there exceptions?
Are all property rental rates expected to fall, or are there exceptions?
No, not all property rental rates are expected to fall. While prime retail rents may drop, the article states that rental rates for prime office space located in the Central district are likely to increase.
Reader pulse
Are HK retail rents set to fall?
17,450 votes so far