Violent demonstrations in Hong Kong have impacted the transfer and closure of economic shops in various districts.
BEIJING, August 18 (Xinhua)-According to comprehensive Hong Kong media reports, social violence in Hong Kong has spread all over Hong Kong, Kowloon and the New Territories, and shops in relevant areas have been unable to open their doors for business and closed their doors, which has led to the emergence of "Jipu" (shop transfer) during this period. For example, watches, jewellery and brand-name fashion, as well as the catering industry, especially restaurants, are the most obvious. "The business volume is reduced by 50% to 60%". Some tenants pointed out that at least the current rent should be reduced by 30% to survive the cold winter. The overall vacancy rate of shops in Hong Kong is about 12% to 15%. If the economic situation continues to deteriorate, it is believed that the vacancy rate of inner street shops in the core areas (such as Mong Kok, Tsim Sha Tsui, Central and Causeway Bay) will be even higher in the future.
The flow of people has decreased, and the "Jipu tide" has appeared.
Hong Kong Wen Wei Po reporters visited major retail outlets, among which the most affected areas included merchants from Yau Ma Tei to Tsim Sha Tsui. They found that there were many shops in Nathan Road and other inner streets, such as the shop on the ground floor of Jinxun Building in Nathan Road, Jordan, which covers an area of 250 square feet and is rented at about 90,000 yuan (HK$, the same below).
Some merchants engaged in bakeries in the area reported that social events have reduced the flow of people around, "which has an impact on business more or less". Another clinic doctor said that the clinic business is dominated by the elderly, and social events spread panic. Many elderly people use domestic servants to fill their prescriptions, and the number of patients who see them has become sparse, which is quite different from the situation where the clinic was full in the past.
In addition, the newspaper reporter found that there were signs posted by seafood shops near Jordan on Nathan Road, such as "End the clearance of goods" and "Ask for money, but don’t (don’t) ask for goods". The shopkeeper indicated that his business was hit by his old age and social events, so he simply ended his business and "enjoy a happy life". Coincidentally, another seafood shop across the street posted similar posters, reflecting that tenants who sell luxury goods such as seafood are hard to make a living under the impact of social events.
Restaurant explosion closing tide
Hong Kong Ta Kung Pao reporter visited the downtown area on the 17th, and the branches of Cuihua Restaurant in Jaffe Road and Jinglong Street in Causeway Bay have all been closed. Cuihua said earlier that Jaffe Road Branch is the company’s re-integration area, and the lease expires as planned. Jinglong Street moved out early due to the reconstruction of the building. Quanfa Seafood Restaurant in the same district also closed down this month. The staff of the nearby merchants said that it was understood that the owner had increased the rent, and the recent demonstrations passed through Causeway Bay and Wan Chai, and the business was greatly reduced. The owner simply closed the door and "did not do it".
The reporter visited Lianxiangju Restaurant, a hot spot for mainland tourists to "punch in", and found that mainland customers were greatly reduced. A staff member said, "More processions will reduce business by at least 30% to 40%, and the business of tourists will be much less." There was another procession on Hong Kong Island today, and the staff member lamented, "What should we do?" Hey, holding a hat is a smile! " (Editor’s Note: "What are you doing? If you don’t go bankrupt, you will laugh!" )
Yuyan has branches all over Causeway Bay, Tsim Sha Tsui and Prince Edward. Zhang Jiahao, chairman and chief executive officer of the group, also complained. Causeway Bay store is the worst. Every time there is a parade, the business volume drops by 50% to 70%. He sighs that "there are demonstrations every week!"
The landlord lowered the rent by more than 10%
Zhang Yinyu, the business director of Midland Wangpu, also said that in terms of new tenants, the overall rent of shops has decreased by 40% compared with April and May, with Mong Kok falling the most, with a drop of 50%.
Zhang Yin-tang pointed out that because there was no recent transaction for reference, the rent of the first-line street remained unchanged at present. The Mong Kok section of Nathan Road is about 150 to 200 yuan, and the Canton Road in Tsim Sha Tsui is about 200 yuan. In terms of buying and selling, investors’ desire to invest in shops has weakened and turned to wait and see, and some buyers have made counter-offers as high as 15% to 20%.
Zhang Yinyu also pointed out that in response to the increase in economic downside risks, owners have taken the initiative to reduce the rent by at least 10%.
Zhang Yinhuang mentioned that apart from reducing the price, the landlord also changed the leasing strategy. For example, in Beihe Street, Sham Shui Po, the landlord originally planned to lease the shop to the catering industry, but it was difficult to rent it because of the poor market conditions, so he rented it to a "clip doll" shop with strong leasing ability in the form of short rent to maintain the rental income.
Huang Weiji, director of the shop department of Zhongyuan (Industrial and Commercial Shop), said that the impact of social events has appeared in all districts, and it is similar. There are three main situations. The first is that the owners reduce rents; The second is to extend the consideration time for the tenants under negotiation; The third is to extend the rent-free period. For example, the rent-free period was originally two to three months, but now most tenants demand that the rent-free period be extended to six months to eight months. As for when this rent reduction tide will last, Huang Weiji said that it is difficult to predict, depending on when social events will end.