Hang Lung Plaza, Against Market Rent, Luxury Sales Decline

According to a data obtained by DTZ, the first floor rental of Shanghai luxury Plaza is 117 yuan / sq m / day, exceeding the level of last year. It is the only rental center in Shanghai.

Henglong Plaza in Shanghai is going against the market to raise its rent. This year, Hang Lung estate is undergoing large-scale adjustment in Henglong Plaza, such as Ji'nan and Shenyang. From rent to brand image, Hang Lung estate is still relying on two Shanghai Hang Lung shopping malls to boost the development of other cities.

　　 Hang Lung Plaza Unit rent record

In December 5th, Italy luxury brand Prada (Prada) announced the third quarter of this fiscal year (August 1, 2014 to October 31st) earnings. Data show that sales in the third quarter fell by 5.6% compared with the same period last year, and net profit fell by about 44%. This is not a case, the reporter learned that, by the impact of China's heavy fighting against corruption, many high-end watches sold more than 30% in domestic sales this year.

Surprisingly, this cold wave seems to have failed to affect Shanghai's most famous luxury brand "landlord" - Hang Lung Plaza. Shanghai's Hang Lung Plaza has gained a steady increase in store rentals in recent years, and this year it has set a new record.

Yesterday, reporters obtained a calendar data from Shanghai's main shopping centers from DTZ, which counted the rental level of the first floor store. Among them, the first floor store rental level of Shanghai Heng Lung Plaza ranked first, the first three quarters of 2014 were 117 yuan, 117 yuan and 115 yuan / square meter / day respectively, while the figures for the first three quarters of last year were 114 yuan / square meter / day, up slightly year on year. The second ranked shopping center is another mall in Shanghai, Hong Kong Heng Long square, the first three quarters of the data were 85 yuan / sq m / day, on the same period of the same period. Rise Trend. Two Hang Lung Plaza will leave behind the rents of other major shopping centers in Shanghai.

According to DTZ's statistics, Hang Lung Plaza has become the only shop in Shanghai. rent "Breaking 100" shopping mall. In the case of the luxury industry, the rental level of Hang Lung Plaza has maintained a steady growth.

In addition, the statistics of CB Richard Ellis also showed that Hang Lung Plaza was the highest in the third quarter of this year, but the value was slightly lower than that of DTZ.

To this, the reporter consulted the Promotion Department of Shanghai Heng Lung Plaza, the other side said that these data were not from Hang Lung real estate, but did not disclose the true level of rent. The other side only said that the company was carrying out an "optimized tenant" plan for two shopping malls in Shanghai. "Many brands of Shanghai Hang Lung Plaza will be expanded and renovated, and the Hong Kong Heng Lung Plaza has introduced and expanded several brands."

　　 Two families Market Sales decline

In an interview with reporters earlier this year, Chen Qizong, President of Hang Lung estate, revealed that the 4 leading luxury brands in Hang Lung Plaza have expanded the store area in Hang Lung Plaza from two levels to more layers.

Chen Qizong explained that in the cold environment of luxury goods industry, the brand will choose to concentrate resources, close or reduce the poor performance shops, and strengthen the investment in the best shops, so the Hang Lung Plaza will increase the rent.

Lin Jian, a fashion columnist, told reporters that the rent paid by the brand to the shopping mall usually adopts the way of "keeping the bottom", that is, the monthly sales are multiplied by the fixed deduction ratio, and the data calculated are higher than the "bottom guaranteed" rent, and the high value is paid for the rent. Luxury brands in high-end shopping centers usually do not want to disclose sales, so they often use fixed rent.

A luxury e-business executive told reporters that although Sun Hung Kai's national gold center catch-up, Hang Lung Plaza still occupies an unshakable luxury landmark status in Shanghai. Many brands are sticking to the Plaza in the light of brand image and regardless of market conditions. For the top brands on the first floor, they are unwilling to risk the risk of closing the flagship store. Therefore, Hang Lung Plaza has strong bargaining power.

Hang Lung real estate semi annual report shows that in the first half of Shanghai, the sales volume of two shopping malls decreased by 2%, but the rental income of Hang Lung Plaza rose by 6%, and the rental income of Hong Kong's Hang Lung Lung Plaza rose by 9%.

However, in the two or three tier cities in China, the development of Hang Lung Plaza is not smooth sailing. Chen Qizong frankly said that Shenyang, Ji'nan and other places have experienced the adjustment of positioning. In the first half of this year, the rent in the mainland increased by 14%, and the rent income in the mainland rose by 5%, excluding the impact of the newly opened shopping malls. All the shopping centers of the company rose rents in the first half of the year, except for Hang Lung Plaza in Ji'nan.

This year, Hang Lung Plaza in Ji'nan experienced a large number of tenancies. In the first half of this year, the rental income of Hang Lung Plaza in Ji'nan dropped by 10%.

A senior commercial real estate consultant who is familiar with Hang Lung estate told reporters that the success of Hang Lung real estate in Shanghai can not be completely replicated to other cities. It is still in the "maintenance" stage in other two or three line cities. Shanghai's two Hang Lung companies need to contribute higher rents and play a higher brand effect in order to boost the development of other cities, Hang Lung Plaza.