Hong Kong at risk of losing retail rent crown
Published on Jul 24, 2014 5:25 AM
HONG KONG (Reuters) - Hong Kong's frenetic Causeway Bay shopping district is at risk of losing its crown as the world's most expensive retail space as a slowdown in mainland tourists hits store sales, paving the way for the first drop in retail rents in a decade.
Hong Kong shop store rents stood at around HK$4,331 (US$560) per square foot in the first quarter - about 25 percent higher than those in New York and almost triple similar rents in Paris, the world's second and third most expensive cities for retailers respectively, according to property services firm CBRE.
But China's economic slowdown and a high-profile anti-corruption drive has taken a lot of the fun out of the kind of conspicuous consumption mainland tourists come to Hong Kong to enjoy.
That means luxury retailers in glittering Causeway Bay are finding it a little tougher to sell big-ticket items like jewellery, reducing their ability to afford the area's high rents and threatening to knock Hong Kong off its perch as the most sought-after retail space in the world.
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!