Capital values of HK high street shops grew moderately in 3Q12

It slowed to 3% against the previous quarter's 9.8%.

Supported by an active leasing market, rents continued to rise in 3Q12 though at a slower rate, says Jones Lang LaSalle.

"The growing interest of retailers in prime shopping centres in non-core locations helped push overall prime shopping centre rents up by 2.7% q-o-q, slightly
higher than the 2.0% y-o-y recorded in premium prime shopping centres," it notes.

Already at record high levels, capital values of high street shops meanwhile grew by a further 3.0% q-o-q in 3Q12 though slower than the 9.8% q-o-q growth achieved in 2Q12.

According to JLL, the investment market remained active in 3Q12, punctuated by a number of notable en bloc sales transactions. Laguna Plaza (163,611 sq ft) in Lam Tim was acquired by CLSA Capital Partners for HKD 1.5 billion while Radiant Centre (10,848 sq ft), a ginza-type commercial development in Causeway Bay, was acquired by a local investor for HKD 368 million.