Sales of luxury goods in Hong Kong dips substantially in Q2

No slowdown in mass market retailers demand.

The sales of some luxury products in Hong Kong have dropped substantially during the second quarter of 2014, and the sector has seen a softened leasing demand from retailers.

According to a report from CBRE, watch and and jewelry sales, for instance, has dropped by 39.9% y-o-y.

Meanwhile, no apparent slowdown in demand from mass market retailers has been observed. The report noted that cosmetics retailers and pharmacies, for instance, remained active in securing retail space.

Prime street shop landlords have softened their stance in rental negotiations, the report said. The fall in rents, however, was only more noticeable in fringe locations.

CBRE also noted that overall prime rents dropped 0.3% q-o-q.