Fifth wave pushes back retail market in H122
Rents of high street shops and prime shopping centres dropped 9.8% and 4.8%, respectively.
The retail market saw a pushback in the first half of the year due to the fifth wave, according to property expert, JLL.
Both high street shops and prime shopping centres saw rental declines in H122, with the former's rent dropping by 9.8% and the latter by 4.8%, JLL said in its latest report.
Whilst posting a rental decline in the first half, JLL said high street shops and prime shopping centres can post a rental growth of 0% to 5% for the entire year.
“We expect the market to see a return to growth when restrictions are further lifted as the pandemic situation stabilises. The timing of tourism restoration remains critical to a more visible retail market recovery in the long run,” JLL said.
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It noted that improvements were already seen in the market towards the end of Q2 22.
“F&B, bakeries, coffee shops and supermarkets have been actively seeking expansion opportunities. Meanwhile, the new concepts that are encouraged by a change in consumer habits towards experiential shopping, such as kids entertainment, art galleries, and car showrooms, have also been seeking expansion opportunities,” the expert said.
The Hong Kong retail market has also seen a 47% YoY increase in the number of newcomer retailers from overseas, with 60% of them coming from the F&B sector.