Hong Kong retail rents have further to fall amid consumer spending dip
Advertisement
'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.
Advertisement
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
HKFP
a day ago
- HKFP
Hong Kong may see surplus in current financial year, defying previous forecasts of continuing deficit
Hong Kong may see a surplus in the current financial year, the city's finance chief has said, defying previous forecasts of recording a deficit for the fourth straight year. Hong Kong has seen improved performance in retail sales and the property market, recording 3.1 per cent year-on-year growth in the second quarter, Financial Secretary Paul Chan said on a Commercial Radio programme on Sunday. 'We originally expected deficits of a few billion in our operating account for the 2025-26 fiscal year, but if this momentum continues, there is a chance our operating account may record a surplus,' Chan said in Cantonese. Hong Kong saw a deficit of HK$87.2 billion for the 2024-25 fiscal year, the third consecutive shortfall. During his budget address in February, Chan attributed the deficit to the poor property market taking a toll on government revenue from land sales and stamp duty. Due to the deficit, the government said that it aimed to cut spending by 7 per cent over the next three years. At the time, the finance minister said the city forecast a continuing deficit of HK$67 billion in the coming 2025-26 financial year. As part of spending cuts, the government axed a HK$2,500 annual subsidy for students and reduced the public transport subsidy scheme, which offers a monthly rebate for commuters. Chan said on Sunday that while the government had upcoming infrastructure expenses, including those for the Northern Metropolis development plan near the border with mainland China, the city's finances were 'very stable and healthy.' Last week, the government said in a statement that Hong Kong's financial markets' performance had steadily improved this year. The Hang Seng Index recorded an increase of over 25 per cent so far this year, according to the statement. The government has also 'achieved remarkable results' in attracting talent and investment, it said. Meanwhile, Chan said on Wednesday that more mainland Chinese companies were expected to list on Hong Kong's stock exchange amid geopolitical tensions, which have made it harder for them to list in the US. Mainland Chinese companies 'would naturally want to come to Hong Kong for listing, because… they can access both international and Mainland capital,' the finance chief said.
South China Morning Post
4 days ago
- South China Morning Post
Hong Kong's MTR adopts AI-powered systems for deploying trains, crowd control
Hong Kong's rail giant has implemented two AI-powered systems to help formulate train deployment and crowd control plans for major events at Kai Tak Sports Park, with plans to consider expanding their applications. The MTR Corporation said on Friday that the two artificial intelligence (AI) tools – a ridership prediction model and intelligent crowd diversion system – had helped disperse passengers efficiently from major events at the park. The ridership prediction model, developed by the firm and Hong Kong University of Science and Technology, relies on billions of data sets collected from government surveys and MTR operations to predict passenger distribution across the entire rail network. It also analysed the rail firm's historical passenger data spanning more than 100 days when concerts and sports events had taken place at Hong Kong Stadium and the Hong Kong Coliseum to generate virtual scenarios after such events. 'We can therefore predict the number of passengers, their travel directions, and the stations and lines they use after an event ends,' said Chan Hing-keung, the MTR Corp's chief of operations for engineering service and innovations. 'With the prediction, we can cross-check with the analysis by the operations team, and determine whether the frequency of trains could disperse the crowds.' Launched in July 2024, the model was first used at the end of that month, when four stations on the Kwun Tong line were temporarily closed as the rail operator upgraded its facilities.
South China Morning Post
5 days ago
- South China Morning Post
Hong Kong's KMB in ‘shock' move to use open-top double-deckers on tourist route
Hong Kong's KMB will use open-top double-deckers on its sightseeing route, but the fare will be doubled as the firm eyes opportunities brought by a rising number of tourists. The city's largest bus franchised operator announced on Thursday that renovated open-topped double-deckers would be used for its HK1 sightseeing route in Kowloon, while its fares would rise to HK$40 (US$5.13) per ride from HK$20. The arrangements take effect from Sunday. 'We hope [KMB] could help bring tourists to eateries, mega-events, sports events, exhibitions and attractions [with the service],' Secretary for Transport and Logistics Mable Chan said. The circular route, which was launched last September, starts and ends at Tsim Sha Tsui pier and covers tourist hotspots, including West Kowloon Cultural District, Mong Kok, Wong Tai Sin, Sham Shui Po and Kowloon City. KMB managing director Roger Lee Chak-cheong said open-topped buses were being used to enhance the 'shock' that double-deckers brought to tourists.
