Retail leasing momentum rises in July: JLL

This is as retailers grow more confident in the business environment.

Hong Kong’s leasing momentum in Uly “continued to pick up slightly” as retailers gradually become confident in the business environment, according to JLL.

Some of the major retail leasing transactions in July include Singapore fashion house Charles and Keith reportedly committing a 1,900 square feet lettable ground floor unit at Fashion Walk in Causeway Bay for a monthly rent of $400,000.

JLL also said investment sentiment improved slightly with some sizeable deals during the month such as the reported selling of a 5,306 sq. ft. ground floor shop in Ngau Tau Kok to a private investor for $110m, with an estimated going-in yield of 2.2%.

It added that the moderate drop in retail sales in June by 1.2% year-on-year suggests that “the market has reached saturation point with domestic consumption being the predominant driver for retail sales growth.”

Online sales, meanwhile moderated to 0.5% due to the easing of social distancing measures, it said, adding that the second release of disbursement vouchers would enable retail sales to rebound in the coming months.