Shop vacancies ease as malls gear for uptick

Themis Qi

The vacancy rate of shops in Wan Chai and Tsim Sha Tsui fell in December last year in a sign that the city's retail trade may be picking up.

This came as shopping malls said they expected visitor numbers to rise significantly now that China has reopened its borders.

Centaline Commercial said the vacancy rate in Wan Chai dropped by 0.45 percentage points monthly to 12.87 percent with Tsim Sha Tsui inching down by 0.01 percentage points to 10.76 percent, though the number of vacant shops in Central, Causeway Bay and Mong Kok continued to increase in December.

Looking ahead, Centaline Commercial expects the shop vacancy rate will fall further as the border with the mainland had reopened after nearly three years and the Chinese New Year is around the corner.

Meanwhile, Sun Hung Kai Properties (0016) predicts the footfall to increase by up to 20 percent yearly at 15 of its shopping malls - including the World Trade Centre in Causeway Bay and apm in Kwan Tong - during the first stage of reopening.

To attract tourists from the mainland, the team running the 15 malls said it will provide HK$10 million worth of awards and that tenants have increased stocks of goods popular with mainlanders by at least 20 percent, including cosmetics, gold, watches and sportswear.

Meanwhile the team managing SHKP's 12 other malls - including Landmark North in Sheung Shui and East Point City in Tseung Kwan O - plan to invest HK$10 million as well to compete for mainlanders, while expecting sales and footfall to rebound by 25 percent and 20 percent respectively over the Chinese New Year.

Sino Group estimates sales at its three major shopping malls will rise significantly in the first quarter, and is joining the race by organizing point-to-point shopping tours from Guangdong province and giving away gift vouchers to mainland tourists.