News
Why landlords are becoming more optimistic about the retail market
It’s partly because of the new administration.
Landlords are becoming more optimistic about the retail market, and it's partly thanks to the new administration, said CBRE.
In a report, CBRE said the measures of the new administration to revitalise the economy has given landlords a confidence boost.
Also contributing to the landlords’ improved optimism is their belief that high-street rents have already bottomed out.
“They are expecting rents to be stabilised or to be improved from the current levels,” said CBRE, adding that landlords also feel that in the future, the impact of the pandemic on the retail market will be “limited.”
Brands and retail operators, for their part, are also “actively deploying their business strategies with most having new stores opening in the plan for the coming year,” said CBRE.
Segments which are most active in terms of expansion are healthcare, supermarkets, high-end household goods and daily necessities.
On the flip side, CBRE said landlords and tenants are still in a stage of the seesaw battle when it comes to compromising on the rental terms.
Given the situation, the expert said retail vacancy level in H2 will likely remain stable, whilst rents will only increase by a meagre 0% to 5%.
Why landlords are becoming more optimistic about the retail market
It’s partly because of the new administration.
Landlords are becoming more optimistic about the retail market, and it's partly thanks to the new administration, said CBRE.
In a report, CBRE said the measures of the new administration to revitalise the economy has given landlords a confidence boost.
Also contributing to the landlords’ improved optimism is their belief that high-street rents have already bottomed out.
“They are expecting rents to be stabilised or to be improved from the current levels,” said CBRE, adding that landlords also feel that in the future, the impact of the pandemic on the retail market will be “limited.”
Brands and retail operators, for their part, are also “actively deploying their business strategies with most having new stores opening in the plan for the coming year,” said CBRE.
Segments which are most active in terms of expansion are healthcare, supermarkets, high-end household goods and daily necessities.
On the flip side, CBRE said landlords and tenants are still in a stage of the seesaw battle when it comes to compromising on the rental terms.
Given the situation, the expert said retail vacancy level in H2 will likely remain stable, whilst rents will only increase by a meagre 0% to 5%.
Overall vacancy rate for Grade A office up slightly 9.4% in June
Vacancy rate in Central rose from 7.6% to 7.9%.
HK allows home quarantine for carriers of 3 Omicron sub-variants
However, patients can only opt for home isolation if they fulfill relevant requirements.
Patients carrying Omicron sub-variants BA.2.12.1, BA.4 and BA.5 will no longer be required to isolate in government-run facilities and can now just undergo home quarantine, the Centre for Health Protection Communicable Disease Branch Head Dr. Chuang Shuk-kwan announced on 20 July.
The same rule applies for the close contacts of patients, Chuang added.
However, Chuang said patients can only opt for home isolation if they fulfil relevant requirements and their household environment is suitable.
“Such arrangements will be the same as those for other Omicron cases,” the medical expert said.
As of 18 July, Hong Kong has 1,093 cases carrying the Omicron sub-lineage BA.2.12.1 and 372 involving the sub-lineages BA.4 and BA.5.
“The World Health Organization noted that there is no severity signal among the BA.5 subvariant. The BA.5 subvariant has a growth advantage over other sub-variants but we have not observed any increase in severity among those patients suffering from it,” Chuang said.
Nominations are now ongoing for the HKB Management Excellence Awards 2022
Organisations can submit entries until 7 October 2022.
Joblessness in HK down 4.7% from April to June
The count of unemployed people went down by 12,800.
HKEX appoints new chief strategy officer
Daniel Sonder will also become head of data business.
Hotel investments in HK swells 70.5% in H122
The market reported $3.9b (US$504m) total sales volume.
Cathay Pacific more than doubles its passengers in June
However, this is still below 2019 figures.
The Asian Export Awards 2022 is now accepting nominations
Submission of entries is open until 30 September 2022.
Hongkong Land’s emission reduction targets get SBTi approval
It is the fourth real estate company in Hong Kong that secured approval.
Grade A office rents to decrease by 2% due to new office supply
There could be 3.9 million square feet of new Grade A supply.
Capital market recovery stays slow amidst Fed interest hike: Colliers
Total investment volume for the first half of 2022 was down by 15%.
89% of local investors want to invest in new assets
Most of them are interested in private equity.
Commercial properties investment volumes down 37.9% in H122
It posted $29.2b worth of investment in the first half of 2022.
Residential prices to drop 5% to 10% due to high mortgage rates
Capital values of luxury residential will decline by 0% to 5%.
Total AUM may still grow amidst rise in China’s wealth: PwC, AIMA
Between 2009 and 2020, China’s wealth rose twelvefold.
Yanlord’s Suhe Century project sold out with $5b pre-sales
The property's average selling price was $155,290 per sqm.
Read Here
Advertise
Sign Up
