Shopping mall rents slipped by 0.9%

The drop in high street shop rents have narrowed.

Retail leasing sentiment improved in Q1 as the contraction of Hong Kong’s retail sales slowed down in pace, according to CBRE. Total retail sales fell 3.2% year-on-year in the first two months, compared to a 3.7% dip in the last quarter of 2016.

"The drop in high street shop rents narrowed but Central was under some pressure due to mounting lease expiry. Shopping mall rents fell by 0.9% q-o-q," CBRE said.

Visitor arrivals increased further in Q1, registering a 1.4% y-o-y uptick in January and February combined.

The F&B sector continued to be the driving force of the leasing market, with grab-and-go outlets the most active.