Savills latest retail report for Hong Kong outlines that the retail market in the third quarter was supported by moderate growth in visitor arrivals numbers and a slowing in the rate of decline in retail sales volume. In summary:
- Visitors from Mainland China recorded a 5.8 per cent MoM growth in August and an increase of 2.6 per cent YoY over the first eight months
- The Golden Week effect will further strengthen visitor numbers in October and luxury retailers reported brisk sales during the holiday
- Retail sales volumes are expected to bottom out soon as Mainland footfall and local consumer confidence return
- Prime street shop rents recorded a strong rebound and rose by 4.2 per cent in Q3 after a 1.8 per cent increase in Q2
- Strong consumer demand was noted for electrical goods and jewellery, and retailers from these sectors are looking for new opportunities in prime locations
- Given weak domestic markets in Europe and the US, international brands are expanding aggressively in Asia, with Hong Kong seen as a safe first step into the China market
- Shopping centre landlords found creative ways to draw Mainland footfall during Golden Week with offers of free travel packages and discounts
- Shopping centre rents rose by 5.1 per cent in Q3 with malls in Kowloon and the New Territories outperforming