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Free Trade Hits Retail Trade. Hongkong'S First-Rate Shops Are Now Reducing Rent.

2014/7/5 14:11:00 22

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Hongkong is known as "shopping paradise". The local rental of shops is also known for its "sky high".

However, with the fall of the free trade effect this year, the overall retail sales of Hongkong, especially the sales of luxury goods, declined sharply.

data show that the rental of retail property in Hongkong, Kowloon and the new territories is down by about 7%-19% in May. In the first tier areas such as Tongluowan, where the crowd is strong, it can be found that there are lots of posters and empty shops everywhere, which are contrasted with the bustle of the crowds outside the door, such as the three Carassius auratus.

According to the industry, the total rental of Hongkong's total shops is expected to fall by at least 10% this year.

< a > href= > "http:// > www.91se91.com/news/index_c.asp > > free line /a >" Wang Ding is not prosperous "Hongkong high-end retail is affected by /p >

There are many famous shops in Guangdong Road, Tsim Sha Tsui, Hongkong. There are many mainland tourists queuing up outside the door every day. However, Huang, a salesman who sells luxury tours to the region, says that the "queues" in recent queues have been much reduced than before. P

Miss P, who has been stationed in Tsim Sha Tsui for a long time, specialties in shopping for sea visiting packages.

She said that in the first two years, she often met with a lot of bold guests, and the big bags came out of the shop. "But now the guests feel much less, and many are still empty handed."

Another colleague of Miss Huang said that he had successfully sold two or three sea tour packages every week. "Now it's only a half month before it opens. There's no way to get fewer passengers."

there is a person in charge of the chain store name "a href=" http:// "www.91se91.com/news/index_c.asp" > clock shop < /a >. At present, the peak traffic volume of customers in the shop is only about 80% in the past. The latest 5. 1 Golden Week store sales fell 30% over the same period last year, and it is ready to close a branch in Tongluowan.

In addition, a number of listed jewelry stores in Hongkong were also hit in the first half of the year. Only hope for the second half of the year is "double spring and leap month".

Since the launch of the Hongkong free administration policy in 2003, visitor arrivals and sales performance have been increasing for more than 10 years, but this rally seems to have reached the bottleneck. P

the growth trend of the number of passengers began to drop. The figures of the Immigration Department of Hongkong showed that the number of mainland tourists fell during the three day holiday of the "May 1" golden week this year. The number of mainland tourists dropped for the first time in the golden week since Hongkong launched the free administration policy in 2003. It is also the largest monthly decline in 12 years since the implementation of the free trade policy. Only 387 thousand of the mainland visitors have visited Hong Kong, a decrease of 1.7% compared with 393 thousand in the same period last year.

"P" and many local shops are more worried about the market is the phenomenon of "Wang Ding is not rich."

Although the number of visitors to Hong Kong has risen in 3 and April, retail data has been declining.

According to data from Hongkong Tourism Development Bureau and Statistics Department, the number of mainland visitors in April and 3 increased by 26.7% and 14.7 respectively, but the retail sales decreased by 1.5% and 9.8% respectively.

in April, < a href= "http:// www.91se91.com/news/index_c.asp" > retail number < /a > made the industry extremely surprised. After eliminating seasonal factors, the performance of the month was the worst since the outbreak of the SARS virus in May 2003. The sales of jewellery, clocks and precious gifts closely related to the consumption of tourists dropped by nearly 40%, followed by 22% of the miscellaneous consumer durables including mobile phones and computer peripherals, while the electrical appliances and photographic equipment dropped by about 8%.

but in April, the retail sales of automobile and auto parts, glasses, footwear and other clothing accessories increased by 15% compared with the same period last year, and the goods, medicines and cosmetics in supermarkets also increased by about 8%. However, the competition of these industries is becoming increasingly fierce, even the profits of the industry giants are facing many pressures.

from the recent announcement of the free running concept stocks, Hongkong cosmetics retailer Sasa, the overall sales growth of Hong Kong and Macao in the first quarter of this year slowed sharply to 5.4% from 28.1% in the same period last year. Another group of companies operating large chain eyeglasses "88" and watch shop "time Gallery" last year's profits even dropped 41%. One of the main reasons is due to the dual impact of the mainland's anti corruption and the slowdown in the consumption of mainland tourists.

Huang Hancheng, chief executive officer of Hongkong P, believes that the mainland's anti corruption, slowing economic growth and the pfer of mainland rich to European consumption have affected Hongkong's retail performance. "The mainland's anti-corruption campaign has been carried out, and the situation of over ten Cartire purchases has disappeared, which is an important reason for the decline in total retail sales."

He believes that the number of free pedestrians has decreased, and the sales revenue of merchants has declined, and their renting capacity has also declined. In the first half of this year, the overall rent in Hongkong has dropped by 5% over the previous year.

the landlord tenant is in a sawing state. The shops are now vacant tide .

the retail trade in Hongkong is blowing westerly, and the rent of the first tier shops has also been adjusted.

In Tongluowan, known as the "most expensive shop in the world", NetEase finance has gone through 14 main streets and found empty shops everywhere. Its doors are covered with various color posters.

a deputy director of a large industrial and commercial property agency who does not want to be named has told NetEase finance that there are about more than 1700 shops in Tongluowan and more than 420 in the core area. The vacancy rate of the core shop has increased from 4-5% to about 7% in the past six months, and the vacancy rate in the whole area has increased from about 3% to 4%-5%, with the longest vacant shop over two years.

the director said that the reason for the vacancy is that the business of jewellery, gold and horseholders, which has the most renting capacity, is also decreasing. With the effect of free trade, the government of Hongkong will also introduce policies to reduce the number of free trips in the short term. The tenants are unwilling to sell high prices. Some foreign clothing brands even postpone their plans to open stores in Hongkong. But on the other hand, many owners worry that the rent reduction will affect the value of the shops, and they will not accept the reality of the price reduction. They will rather not vacant or rent down.

Why do the owners prefer to give up more than a million rent income a year and do not want to reduce the price easily? Huang Hancheng, chief executive officer of the Hongkong union business shop, said that the financial strength of these owners is quite strong, and they will not rush to rent out cash; moreover, they have bought these berths many years ago, and the rental returns over many years have already offset the purchase cost.

In addition, according to the investment habits of industrial and commercial shops, the rent of a store will determine the price for future sale.

Huang Han Cheng said, assuming that a shop has 100 thousand yuan in rent and a year's income and income will reach 1 million 200 thousand. If the value is calculated by 2 percentage interest, then the berth will be 60 million. If the owner reduces the price by 10 thousand yuan, the rent will be 90 thousand, and the price reduction will be 10%. The annual rental income will be 1 million 80 thousand. If the same interest rate is calculated at 2%, the bunk will also be depreciated by 10%, only 54 million, and less than 10% yuan. Therefore, many owners prefer to vacant the year of the trap. Some owners who are optimistic about the future market and have high ability to hold goods are more reluctant to belittle their value.

however, with the increasing number of vacant shops, the owners will finally accept the reality.

Li Yongtao, a senior investor with multiple berths in Tongluowan, said that he also faced the problem of "no one rent". The tenant was not as active as before. He and a group of owners were also thinking about countermeasures. They even considered short rent or separate the berths. When some shops' lease expired, most of the property leasing and negotiation continued to rent, most of them were willing to reduce the rent by 10%-20%.

the situation of vacant price reduction like those in Tongluowan's first tier shops is not an individual case. According to the latest data of the Hongkong rating and Valuation Department, the rental of retail property in Hong Kong Island and new territories decreased by 13.5% and 6.61% respectively in April, to HK $1462 and HK $1248 per square metre monthly rent, while in Kowloon, including Mong Kok and Tsim Sha Tsui, which were frequent travellers, the monthly decline was 18.7%, from 170.1 Hong Kong dollars in March to 138.3 yuan in April.

the industry says the rental level is still bearish. The shop vacancy rate has stabilized.

Since the opening of free trade in 2003, Hongkong's overall retail sales have been ideal. Some large brands with strong renting capacity, such as jewelry and international chain clothing enterprises, are looking ahead, or to catch up to a price of two times to enhance their brand effect. Some shops with low renting capacity can only fade out of the market gradually.

Huang Han Cheng said that when the market was extremely excited, even the "sky high price" was also leased. Especially in the period from 2012 to 2013, the overall rent in the whole territory increased by about 30% compared with the previous two years. In the same year, the rent of Russell street in Tongluowan had even reached a level of 18000 yuan per square meter, and the rent increased by 50% to 3 times every time the first shop was renewed.

But now, with the weakening of the free trade effect, the slowing down of retail sales and the measures taken by the government to regulate the industrial and commercial shops, and even the change of the free administrative policy in the near future, the owners and tenants will also be cautious about the future market.

Lu Zhanhao, director of the United States Wang Pu shop, said that the overall rent in the first half of this year dropped by 5%, and the cumulative decline this year is expected to exceed 10%.

However, he also mentioned that behind the rent reduction is the sober sense of the owners from the excitement, and the situation of some big rent reduction in some shops is gradually falling from the crazy high position to the rational price.

"but the first tier shops are still valuable resources. Although rents will decline, there will be no sharp downward trend for the time being." Lu predicts that the vacancy of shops will be improved as the rent decreases and the market demand rises.

Huang Hancheng added that the weakening of free trade effect has limited impact on front-line shops, because some chain brands are one of the strategies in the prosperous area and will not be easily withdrawn.

But for the two or three line areas, such as Kamimizu Yuanro and Tuen Mun in Hongkong, the volume of parallel imports is relatively heavy. If the government further cuts the number of free travel, the rent in these areas is expected to fall by more than 15%.