Banks, restaurants and cafes swoop in as Hong Kong’s retail rental index sinks to a 34-year low
- High street rental index in the second quarter fell to the lowest level since the second quarter of 1988, according to JLL
- Current rent levels are down 75.3 per cent from the peak reached in the third quarter of 2014
With Hong Kong’s high street shop rental index at its lowest level in over three decades in the second quarter, banks and retailers are cashing in on the opportunity to set up in prime locations, according to market observers.
The retail rental index is currently 75.3 per cent lower than the all-time high reached in the third quarter of 2014, according to JLL. That puts rents at a level last seen in the second quarter of 1988, the consultancy said.
The market is currently experiencing its worst moment since the initial outbreak of Covid-19 in 2020, said Jeannette Chan, senior director of retail at JLL.
“The market is and will be very policy-driven, and the current sentiment is not strong enough to translate into more concrete market activities,” Chan said.
Market observers said many top banks were locking in lower rents as their leases come up for renewal, which were previously in excess of HK$1 million (US$127,390) per month.
