Causeway Bay Shop Wang’s rent value inserted 27% Russell Street rebound
The retail market saw a slight recovery, and the rateable value of the individual shops in the core lots (hereinafter referred to as rental values) bottomed out. The Rating and Valuation Department has completed the revaluation of the rental value in 2018/19 and the rental value of shops on Russell Street in Causeway Bay has risen by 10% after falling for two consecutive years. On the other hand, in the same district, Jinglong Street has a total rent of 26.6% [Table].
Once at the most expensive section of the world, Russell Street in Causeway Bay, rents began to stabilize after experiencing a surge in rents for the past three years. In 2015, it significantly reduced rents by 60% and rented them to the cosmetics shop at Shop No. 18, Russell Street, for a total of $700,000. The drop was the highest in the whole territory. According to estimates, the latest rent for the shop was 8.88 million yuan. The 8.04 million yuan in 2017/18 was up 10.45%. The most glorious period of this shop was the high value of 21.16 million yuan in 2015/16 rental values, and it fell for two consecutive years, reaching 30% and 47% respectively. It now rebounds slightly, still shrinking by nearly 59% during the peak period.
For the 20th floor of Russell Street, Neighbourhood, the rent for 2018/19 is 12.48 million yuan, which is the same as this year. However, this shop is currently only rented at a discount of RMB 400,000 per month, which is a short-term contract. No long tenant has been stationed.
As for the A2 shop on the ground floor of No. 2 Cannon Street, which is the 10th year of Hong Kong’s residence in the same district, the latest rent was 1.656 million yuan, a steep drop of 26.6% year-on-year. The change shop last operated on the site last year. Sino-Israeli monthly rental contracted for 13 years and the rent was 46.9%, which was reflected in the new annual rent. However, since there are only 30 square feet of practical area for berths, the rent is still as high as 4,600 yuan.
The people’s livelihood area Wang Shangshui rose 15%
The rents in the core areas are mixed, while the people’s livelihood area has climbed all the way. Among them, the rents from the mainland’s guests are sweeping cargo hotspots in Sheung Shui. The rental values of the shops in Longji Road and Xinkang Street in the area continue to rise, with the strongest increase of nearly 15%.
Huang Hancheng, chief executive of Midea Industrial and Commercial Store, said that there are signs of bottoming in the rents in the core area, but it is expected that there will be no recovery momentum this year. While the people’s livelihood area is driven by strong consumption, there is still potential for rent to rise, which is expected to increase by at least 5% to 8%. As for the districts of To Kwa Wan and Hung Hom, which have the concept of a sand-centre, the rent value is even higher.