Prime high street shop rents to decrease 10% in 2016

A downward market trend is expected.

It has been observed that Hong Kong retail rents in the traditional top four shopping locations in Hong Kong decreased by another 5.0% QOQ in Q4 2015, resulting in a full year decline of 23.7%.

According to a research note from Colliers, it expects a continuous downward trend in the retail market, as thinning crowds of shoppers force brands to look for cheaper alternatives.

Also, rents of prime high street shops will decline by another 10% in 2016.

Here's more from Colliers:

On the other hand, mass market retail brands, such as fast fashion, active wear and affordable cosmetics, are expected to fill the space vacated by upscale brands.

With the gradual return of mass market retailers to prime shopping areas, there will be a change in the landscape of major shopping streets, which results in a healthier tenant mix.