It Is Beyond Logic And Above Reason! Guangzhou Tai Koo Hui Has Gone Against The Trend.

In recent years, the luxury market has been in a doldrums. In this luxury market is not optimistic, Guangzhou Tai Koo Hui luxury shopping mall has grown against the trend, and its sales volume has increased for 18 consecutive quarters.

Taigu real estate, which operates many luxury high-end stores in the mainland and Hongkong, released its first half performance in 2016. Even though it is now a luxury retail downturn, the rent of mainland retail property portfolio is still growing, with a total revenue of HK $836 million, of which Guangzhou's Tai Koo Hui has recorded 18 consecutive quarters of sales growth.

The biggest black horse in the mall.

Compared with the performance of many luxury stores in China, all the luxury high-end stores in mainland China recorded retail sales growth, including:

Guangzhou Pacific and Beijing Sanlitun Taigu retail sales grew by 4%

Retail sales of Beijing Yedi port shopping mall increased by 13%

Chengdu ocean pacific sales sales skyrocketed 113%

According to Swire property, although the RMB depreciated by HK $5%, the total rental income of the group's investment portfolio in mainland China in the first half of 2016 was HK $1 billion 25 million, an increase of HK $15 million over the same period in 2015, reflecting the increase in the renewal rent and the increase in retail sales.

Among them, the total rental income of the mainland retail property portfolio is HK $836 million, and the total rental income of the mainland office property portfolio is HK $182 million.

In the mainland market, Taigu real estate indicates that retail sales will increase moderately in the second half of 2016, and it is expected that market demand for superior shops in superior areas will remain strong.

In recent years, sales of luxury goods in China have been depressed.

The Hong Kong listed Hang Lung real estate hit the bottom of the month in the first half of July, and reported that the rental income of the two luxury high-end flagship shopping malls in Shanghai dropped by 8%, while the retail sales in Shanghai Hang Lung Plaza and Hong Kong Heng Lung Plaza decreased by 2% and 6% respectively.

The interests of luxury brands and high-end commercial real estate are closely related. Industry analysts say that the growth of retail sales, especially luxury goods sales, has slowed down as the overall economic weakness in the mainland of China has weakened.

In this case, the luxury shopping center, once an important part of the luxury retail chain, is also facing a new turning point.

Guangzhou Tai Koo Hui has become a new landmark for high-end shopping malls in Guangzhou and Southern China.

It is noteworthy that, as a new benchmark for luxury consumption in Guangzhou, Taigu Hui has entered the international luxury brands including Chanel, Hermes, LV and nearly 4 brands are the first to open shops in Guangzhou.

Sui Songwei, the chairman of Tai Koo estate, emphasized earlier that sales of the mainland's retail industry is expected to maintain steady growth. Guangzhou's growth is particularly strong. Guangzhou's Archaean general manager, Mr. Sui Songwei, said earlier that the clear market positioning was an important reason for the success of Tai Koo Hui. In addition, Beijing has a broader space for development than other cities such as Beijing and Shanghai. The new plan shows that the government is concerned about the high-end retail industry. It is not a challenge for Tai Koo Hui, it is an opportunity to tap more market potential.

However, Hongkong's residential and retail property will be a new challenge for Swire property. Taigu real estate indicates that the decline in basic profits of shareholders should mainly reflect the sale of noble residential properties in Hongkong.

Decline.

In the first half of 2016, Taigu real estate pactions recorded HK $525 million operating profit, while operating profit in the first half of 2015 was HK $1 billion 25 million.

Most of the profits in the first half of 2016 came from the 226 pre-sale units of the US Reach project delivery buyers and the units sold in Hongkong Hanran project.

The decline in retail sales in Hongkong has made the attitude of high-end retail brands more conservative. Taigu real estate chief executive Bai Dali said that in order to match the consumption tendency of the market, the number of tenants in Taigu square has been raised to 50% to stimulate the flow of people.

Due to turning high-end retail outlets into gourmet shops, we believe that average rents and average consumption will drop, but it will stimulate people's growth.

He pointed out that at present, the retail ring is in a doldrums, and it is expected that it will not rebound in the short term. The company's past high-end retail store combination can no longer attract consumers continuously.