Hong Kong’s retail landlords are extending more rental discounts to their tenants, property agents said, amid a tough operating environment.
Advertisement
Japanese supermarket chain Don Don Donki will be keeping its 17,332 sq ft of space across two floors at 100 Queen’s Road Central for HK$900,000 (US$115,456) a month, a 25 per cent reduction from the HK$1.2 million that the company paid for the property in 2020, agents said on Wednesday.
Meanwhile, a space spanning 8,150 sq ft in the basement of the LHT Tower on Queen’s Road Central was snapped up by a gym operator, which signed a lease in March for HK$400,000 a month. Agents said the previous tenant, mattress retailer Beyond Sleep, paid 20 per cent more at HK$500,000 per month.
In Kowloon’s Mong Kok, a 3,600 sq ft space at 48-50 Sai Yeung Choi Street South was leased by a sporting goods retailer for HK$400,000 a month in April, down 20 per cent from the HK$500,000 that British beauty retailer Lush was paying previously, the agents said.
The rental discounts come amid a sluggish retail environment in the city.
Advertisement
Retail sales in Hong Kong fell 3.5 per cent in March, marking the 13th straight month declines, according to the latest official data. It was, however, less severe than the 13 per cent plunge that was recorded in February.
“Landlords and tenants should work as business partners to tackle challenges,” said Martin Wong, senior director and head of research and consultancy for Greater China at Knight Frank.