HONG KONG – DBS Group Holdings clinched a deal to rent retail space at New World Tower in Hong Kong’s Central district for 18 per cent less than the asking price, according to a person familiar with the matter.

Singapore and South-east Asia’s biggest lender will rent the 12,000 sq ft space for HK$1.8 million (S$315,000) a month, less than the HK$2.2 million sought, the same person said, asking not to be identified as the matter is private.

The bank confirmed in an e-mail response the opening of a new DBS Treasures branch for wealth management services.

The new outlet will focus on servicing affluent local and mainland Chinese clients.

Hong Kong’s commercial rental market has suffered from a downturn dented by a population outflow, weakening spending power among mainland visitors, and rising interest rates that have prompted companies to cut back on spending.

Shopping spaces in other prime commercial districts have also come down from their highs. A former Burberry shop was leased for 70 per cent less than its peak price, Sing Tao Daily said in August.

Christian Dior was expected to pay 36 per cent lower than the former tenant for a shop in Central, the Hong Kong Economic Times reported in April.

Sing Tao reported earlier that DBS signed up for the space at a price more than 70 per cent lower than the peak. BLOOMBERG