Major retail locations in the Asia-Pacific region are gradually recovering, with average rents up about 7% from the low point of the epidemic, and Tsim Sha Tsui continues to top the list of the most expensive retail locations in the Asia-Pacific region.
However, Tsim Sha Tsui store rents of $933 per square foot, down 41% from the pre-epidemic period, still ranked second, 4% higher than third place in Milan ($897).
The first is $1,300 on Fifth Avenue in New York, up 14% from the pre-epidemic period.
The bank said that, limited by the quarantine arrangements, Hong Kong and the mainland can not be normal customs clearance, the traditional tourist areas of Tsim Sha Tsui and Causeway Bay rents were down 5% and 7% respectively compared to last year, while the Central District remained stable.
Overall, the average retail rent in Hong Kong's major areas recorded a maximum 49% downward adjustment compared to the pre-epidemic period.
Apart from Hong Kong, Tokyo ($614), Sydney ($470), Seoul ($369) and Shanghai ($322) in Asia Pacific still managed to rank among the top 10 most expensive retail locations in the world.
DTZ's Executive Director and Head of Hong Kong Retail Department, Mr. Lin Yingwei, pointed out that a change in the mix of stores in the core areas of Hong Kong has been noticed, such as the mix of shops in Causeway Bay has gradually shifted to cater to the lifestyle consumption pattern of local people, and the vacancy situation has been improved compared to the beginning of the year.
Similarly, Canton Road in Tsim Sha Tsui, which used to be a street of famous stores, has been filled by other more popular brands. Individual landlords are also willing to break down their stores to provide more flexible options for tenants.
Lam added, happy to see the government gradually relax the social distance measures and quarantine arrangements to Hong Kong, looking forward to next year, Hong Kong and the mainland customs clearance arrangements are more clear, the number of tourists visiting Hong Kong is expected to rise significantly, for retail spending and rentals to bring upward momentum.