How the looming change in Individual Visit Scheme could impact retail market

Restriction of Mainland visitor numbers has consequences.

It has been noted that with the potential modification of the Individual Visit Scheme to restrict Mainland visitor numbers, the development trend of the local retail market could be affected.

According to a research note from Knight Frank, meanwhile, it expects rents in core shopping centers to grow marginally in 2015.

Rents of street shops in prime retail districts may fall 3-5%, meanwhile.

Here's more from Knight Frank:

In January 2015, the total retails sales value plunged 14.6% compared with a year earlier, to settle at $46.6 billion, despite tourist arrivals having increased 2.8% year on year. It was the first double-digit decline in the first month of a year, since 2002.

The sales value of 'jewellery, watches and clocks, and valuable gifts' fell a further 21.4% in January 2015, year on year.

However, the declines were partly due to distortion resulting from the difference in the timing of Chinese New Year, which fell in mid-February this year, but in late January last year.

The retail property market recorded a few major leasing transactions last month. A sportswear retailer reportedly renewed the lease of its 17,000-sq-ft, multiple-floor flagship store at 17 Hankow Road in Tsim Sha Tsui, while an international car brand leased a 4,800-sq-ft, ground-floor space in Entertainment Building in Central.