Rental decline of retail shops slows in 4Q15 to 2% q-o-q

While lease surrenders eased temporarily.

In Hong Kong's retail market in the real estate sector, it has been noted that rental decline of retail shops decelerated in Q4 2015, seeing a drop of 2% q-o-q (17% y-o-y for 2015).

According to preliminary figures from a research note from CBRE, further, lease surrenders eased temporarily as retailers tend not to forego business at the peak time of consumption.

Also, total retail sales dropped 3.1% y-o-y in the first 11 months of 2015. A low single-digit fall is expected for 2015 overall.

Here's more from CBRE:

Currency differences continued to drive tourists away from Hong Kong. The full year is expected to record the first decline in visitor arrivals since the implementation of the Individual Visit Scheme (IVS) in 2003.

Lastly, mid-range brands continued to be the growth engine in the leasing market, and a number of tier-1 street shops have been leased to these retailers in Q4.