East sunrise west rain: Hongkong retail industry quietly changed

2017-03-21

Xinhua news agency, Hongkong, March - 20: East sunrise west rain: Hongkong retail industry quietly changedTongluowan is a bustling Hongkong retail business battleground. The huge flow of people has brought high rents, so that once became the world's most expensive lot, but in recent years, Tongluowan District rent has been lower, down about 40% straight.

At the same time, the Hongkong Industrial Zone in the shops rent is slowly rising, an increase of about 8%. Two regions in the shops rent East sunrise west rain behind, is quietly changing the layout of the retail industry in Hongkong.

"Can you imagine, Russell street shops sell red packets (red envelope)." Hongkong, a real estate company staff said. Russell street is located in the center of Tongluowan shopping district, has gathered a large number of jewelry stores, watches and luxury shops. 2012, the street shops to rent per square meter per month, the average rent of HK $13 thousand crown.

In recent years, however, Russell street rents have been falling all the way. According to the Hongkong real estate company Jones Lang LaSalle report in January this year, Russell street shops rent since the peak in 2014, the cumulative decline of 37%. Russell "discovered" the street is closed shop, rent a shop in the road is lower under these results.

Not only in the Russell street, central and Tsim Sha Tsui two shopping district has also been a similar situation: a number of brand-name luxury shops or price sublet, or on this vacant.

Commercial real estate services company CB Richard Ellis in March released data show that from 2014 to 2017, Tongluowan, central, Tsim Sha Tsui and Mong Kok of the 4 Hongkong core business district rent from 2014 highs fell about 40%. Even so, there are still businesses have withdrawn, many shops due to high rents and vacant.

Compared with the core business district, Hongkong traditional industrial zone is another scene: more and more shopping malls and retail outlets here. In Hongkong the most representative of the Kwun Tong industrial zone as an example, before 2010 there are more than 80% industrial plants, after 2015 more than and 40 commercial projects have been stationed, many brands and retail businesses have settled here.

Unlike the first line of Tongluowan shopping malls often have vacant shops, the tenants of these industrial buildings (industrial buildings) demand, can be said to be hard to find a shop." CB Richard Ellis, executive director of retail services, said Lian Zhihao.

"Plan" activation change or reconstruction of land use in 2010 after the government launched a lot of open, wholesale, creative industries and cultural groups in industrial buildings, the original uniform plant take on an altogether new aspect. In addition to Kwun Tong, this trend is also seen in the industrial areas of Changsha Bay, Tsuen Wan and Lai Chi kok.

According to the Hongkong SAR Government RVD announced property report, the average rental price for private retail Hongkong Kowloon area buildings by December 2015 per square meter of HK $1378 to HK $1494 in January 2017, and the island in the same period of HK $1625 to HK $1398, forming a sharp contrast.

Behind the rise of Hongkong retail rents, is the change in the layout of the retail industry in Hongkong." Even Zhang analysis said that Hongkong's core business district to attract the majority of buyers are tourists. Hongkong tourism continued to slump in the past two years, a lot of store sales decline in the core business district, because they can not afford the high rents have been withdrawn, the owners can only reduce the rent to attract new stores home to take over the shop.

CB Richard Ellis, senior director of consulting services and transaction services, said Li Shangwen, in the traditional industrial zone or living area of Hongkong, the local consumer's desire to spend nearly two years began to return to warm. Merchants settled in this area can attract workers or tenants weekdays, weekend organized by the characteristics of the market, theme carnival, film screenings and other activities to attract consumers in other regions.

2017 should be a year of transformation and recovery of the retail industry in Hongkong." Lian Zhihao said that the luxury sector monopoly in the core business district was broken, rents decline, the rise of the middle end of the public brand, these are the benign adjustment of the market.

Even Zhang also said that now Hongkong retail cake has become bigger, in addition to the core values and the new town (near the port) of the mall, the previous industrial district has become the new darling of consumers. Now, the traditional business district industry mainly in the end the mass brands harder to retain. In addition, the core business district will also introduce more features, innovative, creative shops to attract consumers, rather than just stereotyped stores and luxury stores.

Hongkong Travel Industry Council director general Dong Yaozhong said, visitors to Hong Kong began upgrading, before the visitors to Hong Kong prefer to buy luxury goods, but now more and more tourists love to buy shoes, cosmetics and pharmaceuticals and other consumer goods. Many travelers are no longer just shopping, but want to experience more local characteristics of Hongkong.

Dong Yaozhong said, Hongkong tourism is under the new situation to change, to explore a new way of tourism, cultural events and delicacy, such as the experience of Hongkong's living area, cruise tourism, fishing and other special activities. It is hoped that these changes will bring back the golden age of tourism and retailing in Hongkong".