Retail in Asia

In Markets

Hong Kong store rents may climb on influx of Chinese shoppers

Hong Kong store rents may rise by as much as 10 percent this year as retailers benefit from an influx of shoppers from Mainland China, Savills Plc said yesterday.

Rents in malls with the best locations, such as Times Square in Causeway Bay and IFC Mall in Central, may increase by 5 percent to 10 percent this year, while those at street level, including Canton Road in Tsim Sha Tsui, may climb 10 percent, Simon Smith, Hong Kong-based Senior Director of Research at the property broker, said in a phone interview.

"Retail rents are supported mostly by mainland tourists who come to Hong Kong," Smith said. "The long-haul visitors who fell away last year are starting to come back."