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    Hongkong's People's Livelihood Economy Has Been Hit Hard, Shops Are Closed And The Tide Of Closure Is Beginning.

    2019/8/19 15:11:00 0

    Hong Kong

    Hongkong media reported that social violence in Hong Kong and Kowloon, the new territories, shops in related areas can not open doors and business is closed, so that during this period, "Ji Pu" (shop transfer) emerged. For example, watches and jewellery, brand-name fashion, and catering industry, especially restaurants, are the most significant. "Business volume is less than five or six percent", and tenants have at least 30% of the current rent to be able to survive the cold winter. The overall vacancy rate of the whole berth is about 12% to 15%. If the economic situation continues to deteriorate, it is believed that there will be a higher vacancy rate in the inner street berths of the future core areas (such as Mong Kok, Tsim Sha Tsui, central and Tongluowan).

       The flow of people is reduced.

    Hongkong's Wen Wei Po visited various major retail outlets. Among the most affected areas, including merchants from Yau Ma Tei to Tsim Sha Tsui, there were many Jilin shops, such as Nathan road or other inner streets. For example, the area of Jipu, the ground floor of Jotun Nathan Road King Hoon tower, was 250 Fang Yingchi, which was leased at about 90 thousand yuan (HK $, the same below).

    There are bakery businesses in the region who reflect that social events have reduced the number of people around them and "have more or less impact on business". Another clinic doctor said that the clinics were dominated by elderly people, and social events caused panic. Many elderly people were dispensed by domestic servants, while patients with symptoms became sparse.

    In addition, the newspaper reporter found that Nathan Road near Jotun section appeared in the seafood shop to paste the "end of the goods", "money, no (need) goods" and other recruitment paper, the owner indicated that because of his age and social events, the business was hit, so the end of the business "enjoy a good fortune". Coincidentally, there is another seafood shop posted on the opposite side of the market, which shows that the tenants who sell luxury seafood and other luxury goods are hard to earn under the impact of social events.

       Restaurant boom

    Hongkong's Ta Kung Pao reporter visited the downtown area 17 days ago. The branches of the Tsing Hua restaurant in Sheffield road and King Lung Street in Tongluowan were all closed. Tsui Hua said earlier that the Sheffield branch was the company's redeployment area. As planned, at the end of the lease, King Lung Street moved out earlier because of the reconstruction of the building. In the same month, the Quan FA seafood restaurant was also closed this month. The nearby business staff said that it was understood that the owners had increased their rents, and that many recent demonstrations had gone through business in Tongluowan and Wan Chai.

    Mainland tourists' "punch card" hot Lotus Restaurant, the reporter visited the mainland customers were found to be greatly reduced. A staff member said, "the business of traveling is reduced by at least three to 40%, and the business of passengers is much less." today, there are demonstrations on the Hong Kong Island area. The staff sighs, "why?" Well, he is a laughing stock. (editor's note: "what is it? Don't laugh if you don't go bankrupt!")

    Zhang Jiahao, the chairman of the group and the chief executive officer of Tongluowan, Tsim Sha Tsui and Prince Edward, also complain. Tongluowan stores are the worst. Each business procession falls by 50% to 70%, and he sighs "there are demonstrations every week."

       The owner reduced the rent by more than 10%.

    Zhang Yinqu, managing director of the United States Wang Pu, also said that the new tenant has recently reduced the rental volume of the total shops compared to 4 and 4 in May, with the largest drop in Mong Kok and a decrease of 5.

    Zhang Yinqu pointed out that due to the fact that there was no transaction in the near future, the rent of the first tier streets remained unchanged, and that of Nathan road in Mong Kok was about 150 to 200 yuan, about 200 yuan in Guangdong Road, Tsim Sha Tsui. In terms of buying and selling, investors' investment in shops is expected to turn pale and wait and see. Some buyers are offering a counter-offer of up to 15% to 20%.

    Zhang Yinqu also pointed out that in response to the increase in the risk of economic downfall, the owners have voluntarily lowered the rent by at least 10%.

    Zhang Yinqu mentioned that the owners also changed the leasing strategy in addition to the price reduction. For example, the owners of the deep water North River Street had originally intended to rent the bunk to the catering industry, but the market condition was not good enough to rent out. Instead, they were leased to the "clipping" shop with a strong rental capacity in the form of short rent so as to maintain the rental income.

    Huang Weiji, director of the Department of Commerce in Zhongyuan (industrial and commercial) shop, said that the impact of social events appeared in all districts, and there were three main cases: the first is the landlord's rent reduction; the second is the extension time of the tenants in the negotiations; third, the extension of the rent free period, for example, the rent free period was 2 to 3 months, and most tenants are required to extend the rent free period to six months to 8 months. As for the duration of the rent reduction to continue, Huang Weiji is hard to predict and depends on the completion of social events.

      


    Source: China News Network

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