{"id":11656,"date":"2021-03-18T09:53:04","date_gmt":"2021-03-18T02:53:04","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=11656"},"modified":"2021-06-04T16:09:56","modified_gmt":"2021-06-04T09:09:56","slug":"vacancy-rates-of-street-shops-in-hong-kong-likely-to-stabilise","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/vacancy-rates-of-street-shops-in-hong-kong-likely-to-stabilise\/","title":{"rendered":"Vacancy rates of street shops in Hong Kong likely to stabilise"},"content":{"rendered":"

The country\u2019s street shop market shows signs of stability, as <\/span>mass-market<\/span>\u00a0restaurants\u00a0exploit<\/span> lower rents from luxury and cosmetics <\/span>business<\/span>\u00a0<\/span>shutdowns<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

\"\"
The vacancy rate in\u00a0Mong\u00a0Kok improved for three consecutive months. Location: Fa Yuen Street Market, Mong Kok, Hong Kong. BaiterekMedia\/Shutterstock<\/figcaption><\/figure>\n

According to South China Morning Post<\/a>, Hong Kong\u2019s street shop market is s<\/span>trengthening, as mass-market restaurants take advantage of cheaper rents to take the place of luxury and cosmetics businesses in the city\u2019s main shopping districts. <\/span>\u00a0<\/span><\/p>\n

Raiky<\/span> Wong, director of retail department at\u00a0<\/span>Centaline<\/span> Commercial, said the<\/span> vacancy rates in major districts have\u00a0<\/span>stabilised<\/span> as more businesses, especially restaurants, are betting on a comeback in consumer spending. The arrival of COVID-19 vaccines would help control the pandemic, gradually leading to a recovery in economic activity<\/span>.<\/span>\u00a0<\/span><\/p>\n

\u201cThe market generally believes that the shop sector is not far from the bottom. More businesses are likely to take advantage of this\u00a0<\/span>period of time<\/span>, when there is still room for negotiating rents, and speed up their deals,\u201d Wong added.<\/span><\/p>\n

\u201cRecently, a lot of large shops have been rented in urban areas, which reflects a rebound in tenants\u2019 confidence. The vacancy rates of shops in core areas are likely to continue to <\/span>stabilise<\/span>\u00a0in the short term.\u201d<\/span>\u00a0<\/span><\/p>\n

These optimistic signs follow a massive drop in tourist arrivals, a 94 percent plunge to 3.57 million in 2020. Due to the pandemic, the country has restricted entry by overseas visitors and implemented\u00a0<\/span>strict quarantine measures\u00a0<\/span>since<\/span>\u00a0mid-March last year.\u00a0<\/span>\u00a0<\/span><\/p>\n

Even though luxury and cosmetics shops have been heavily affected by the tourism plung<\/span>e, a variety of shops in the city\u2019s major shopping districts have opened. For instance,\u00a0<\/span>a restaurant well-known for its snake soup reopened in Wan Chai last month and is currently paying HKD120,000 (USD15,454.15) per month, as <\/span>stated by\u00a0Centaline. In April last year, the restaurant was paying HKD300,000 per month for a shop in Causeway Bay\u2019s Percival Street.\u00a0<\/span>\u00a0<\/span><\/p>\n

The vacancy rate in\u00a0<\/span>Mong<\/span>\u00a0Kok improved for three consecutive months, with a slight 0<\/span>.2\u00a0<\/span>percent<\/span>\u00a0drop to 11.9 percent in February.\u00a0<\/span>\u00a0<\/span><\/p>\n

Moreover,\u00a0<\/span>Centaline<\/span>\u00a0data revealed that the number of shop leases from January to February increased 1.8 times year-on-year from 266 to 754 this year. Teddy Wong, senior district sales director at\u00a0<\/span>Ce<\/span>ntaline<\/span>, said t<\/span>he rental market has recently sparked again by a correction in rents so transaction volumes are likely to rise<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

More: Hong Kong developers worry as travel restrictions pummel hotels and malls<\/strong><\/a><\/p>\n

DBS Bank (Hong Kong) didn\u2019t expect high-street shop rents to rise this year after a 37 percent overall decline last year.\u00a0<\/span>\u00a0<\/span><\/p>\n

Restaurants have also taken advantage of the well-equipped eateries listed for distress sales and the number of unemployed experienced workers.\u00a0<\/span>As a result, t<\/span>his has led to a handful of<\/span>\u00a0new\u00a0<\/span>mass-market restaurants<\/span>, said Ray Yung, district sales director at Midland.\u00a0<\/span>\u00a0<\/span><\/p>\n

Meanwhile, commercial property, in general, has also benefited from the removal of the double stamp duty, with more business activity over the Lunar New Year period, added Daniel Wong, Midland<\/span>\u00a0IC&I\u2019s chief executive, expecting the sector to do well.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The country\u2019s street shop market shows signs of stability, as\u00a0mass-market\u00a0restaurants\u00a0exploit\u00a0lower rents from luxury and cosmetics business\u00a0shutdowns\u00a0\u00a0<\/p>\n","protected":false},"author":12,"featured_media":21084,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[171,1064,248,1161,1160],"class_list":["post-11656","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-hong-kong","tag-recovery","tag-retail","tag-street-shops","tag-vacancy-rates","news_country-hongkong","news_author-property-report"],"acf":[],"yoast_head":"\nVacancy rates of street shops in Hong Kong likely to stabilise | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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