Hong Kong retail rents have further to fall amid consumer spending dip
Activity in Hong Kong's retail leasing market is strong despite lukewarm retail sales, as companies take advantage of rents that are relatively low – and set to fall further, according to some experts – to move into larger premises or better locations.
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'The retail market has shown a mixed picture, where we see some business owners from [food and beverage] and clothing shops worrying about their sales during the Easter Holiday, yet leasing activity in the core retail districts remains very active,' said Jeannette Chan, senior director of retail at JLL Hong Kong.
Leasing momentum was particularly strong in mass-market segments, but 'retail rents continued to dip as landlords in general offered discounts to attract and retain tenants amid sales headwinds', Chan added.
Total retail sales during January and February fell 7.8 per cent year on year, steeper than the 6.6 per cent drop in the fourth quarter, according to JLL's latest report published on Thursday. A sales decline hit most major retail categories, it said. 'Jewellery, watches and clocks, and valuable gifts plunged by 15.8 per cent, compared to 10.4 per cent last quarter,' JLL said.
During the Easter long weekend, retail sales suffered as Hongkongers left the city in droves, with 1.3 million departures by residents and only 234,090 visitor arrivals recorded on April 17 and 18, according to official data.
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Departures by locals rose 31.4 per cent from pre-pandemic figures in 2018 and 8.4 per cent over the Easter holiday last year. The arrival numbers were 20.4 per cent lower than in 2018 and 15.2 per cent higher than last year.
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HKFP
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Knowing that Hong Kong still had a few industrial sites – albeit operating on a much smaller scale than in previous decades – Kume became determined to track down products that were made locally. She was in luck. The photographer first stumbled upon a book by design scholar Matthew Turner, titled Made in Hong Kong: A History of Export Design in Hong Kong. It served as an introductory guide to household items and toys manufactured in Hong Kong for Kume, who developed a habit of checking the label or stamp of each item of interest to see where it was manufactured. It was 'natural' for her to want to find locally made products, Kume said, drawing a comparison to Hongkongers seeking out Made in Japan goods while travelling. 'Hongkongers are used to seeing these household items. 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'There is no place in the world that can have access to Eastern and Western goods so easily,' Kume said. One of Kume's favourites, which she said would never be up for sale, is a panda-shaped radio produced by the company Sonix in Hong Kong during the 1960s. The funky, asymmetrical design — using the channel and volume knobs as eyes and featuring a playful smirk — was very 'evocative of the era,' Kume said. Another reason Kume loves vintage Hong Kong-made goods is their durability and the fact that one can often find beautiful pieces at relatively low prices. Kume used to be able to find affordable Made in Hong Kong products in good condition at shops and markets in older districts of the city. In recent years, however, the prices of these items have risen, and instead of searching on the streets, Kume now conducts her treasure hunts online. The photographer once discovered ceramic pieces from Hong Kong in an online shop based in Malta, which came as a total surprise. 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