Hong Kong – April 2019 MARKET IN MINUTES Retail Leasing Savills Research Savills team Please contact us for further information RETAIL Nick Bradstreet Managing Director Head of Leasing +852 2842 4255
[email protected] Barrie Chan Deputy Senior Director +852 2842 4527 Retail market limps into 2019
[email protected] Despite a less than impressive January and February, some sectors continue to RESEARCH do well including cosmetics and pharmaceuticals. Simon Smith Senior Director • Retail sales over January and February recorded their fi rst • Experiential retail is catching on fast as the most Asia Pacifi c decline since February 2017, falling by 1.6%. creative brands off er customers a more rounded in-store +852 2842 4573 environment.
[email protected] • The retail leasing market itself posted a subdued Kathy Lee performance and shopping mall rents rose modestly driven • Some retailers are beginning to understand the aging Director mostly by Harbour City, while street shop rents fl atlined. demographic better which is more segmented than Retail Consultancy previously as the “soon-to-be-old” (55-64 yrs) can be +852 2842 4591 • We expect 2019 to see stable rents in the absence of any distinguished from the “elderly” (65-79 yrs) by their
[email protected] major stimulus which would be necessary for robust growth. interests, incomes and activity levels. Savills plc Savills is a leading global real estate service provider listed on • New road and rail infrastructure linking Hong Kong more the London Stock Exchange. The closely with the mainland has resulted in more visitors, company established in 1855, has “ Causes of disruption in the a rich heritage with unrivalled but both have so far underperformed passenger volume growth.