H.K. Commercial Real Estate into the Abyss



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ORIGINAL POST

Posted by Ed 27 days ago

“Real estate typically reacts slower to economic and political situations and we may not see the full effect in Hong Kong until the fourth quarter of this year and going into 2020.” 

 lower volumes in the commercial segment show how investors have turned cautious about the prospects of the city’s economy and its property market, once deemed the hottest in the world.
 
Many potential buyers have been totally put off by the seemingly unending social unrest that has beset the city since June.
 
 

As an example of how investors view the prospects of Hong Kong’s property market, the Kimberley Hotel in Tsim Sha Tsui was sold for HK$4.3 billion (US$548 million) in October, about 28 per cent less than the owner’s original asking price of HK$6 billion.

 
https://www.scmp.com/business/companies/article/3038284/hong-kong-commercial-property-deals-fall-third-worsening 

COMMENTS

Ed 26 days ago
Chanel, Rimowa delay new stores, Prada moving out, sales plummet at Moncler, Gucci – will Hong Kong become city of ‘ghost malls’?
 
  • As the unrest in Hong Kong continues, some luxury brands are preferring to pay high rents for empty spaces instead of opening planned new stores
 
  • Landlords, who for years have been able to charge very high rents, are realising that they will have to compromise to keep their tenants
 
“Opening soon,” says the white hoarding covering a Chanel Beauty store on the aptly named Fashion Walk, a retail area normally teeming with shoppers in Hong Kong’s Causeway Bay district. The shop, which has looked like this for nearly four months, is just one of many whose openings have been significantly delayed by recent anti-government protests, adding to the increasing number of empty storefronts appearing in the city’s retail enclaves.
 
As the escalating unrest sparked by a now-withdrawn extradition bill shows no signs of abating, luxury brands that had plans to open new stores in the third or four quarter of this year have put things on hold, taking a wait-and-see approach towards developments as Hong Kong enters its sixth consecutive month of turmoil.
 
 
https://www.scmp.com/lifestyle/fashion-beauty/article/3038400/chanel-rimowa-delay-new-stores-prada-moving-out-sales


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