Hang Lung Chen Jiayue: Not Pessimistic About Hongkong's Retail Industry

Chen Jiayue, director of Hongkong real estate leasing and sales, said at a media luncheon that the significant slowdown in retail sales in January was mainly due to the difference in the lunar new year between last year and this year. If we compare sales in the first two months of this year, we believe that this year will not be worse than last year, and we expect a slight increase in retail sales.

Although the occupy and anti free demonstrations have a significant impact on Hongkong's retail industry, Chen Jiayue said that Hongkong's retail market situation is not pessimistic.

He believes that the growth rate of retail sales in the past has exceeded the normal level, and the development of retail sales in the future will tend to be normalized. It is believed that the market will continue to grow in the normal environment, and the shopping malls will also strike a balance between the local and the mainland customers.

Chen Jiayue also pointed out that Hong Kong The consumer market tends to diversify, and the high-end retail market will inevitably slow down. But I believe that this change is not a change in sales and consumer sentiment, but a change in the consumption patterns of the mainland and local customers.

He continued to point out that the recent anti free trade demonstrations have little impact on their shopping malls and shops. The parade is mainly concentrated in the large shopping malls in the new territories, and the commodities that cater for the mainland and the parallel passengers will be more affected.

However, Chen Jiayue disclosed that Zhong Zhong had a certain impact on its shopping malls and shops. The business of the gold shop was somewhat down, but the occupying time was not too long, and the turnover quickly returned to normal.

Although the political movement has little influence, Hang Lung estate is actively optimizing its projects to increase revenue.

according to Chen Jia Yue The plan for the launch of Hang Lung estate in 2012 is expected to be completed in about 8 years. The project involves the Yalan center, jialifong, Tongluowan Fashion Walk, and so on. Peak Galleria , Amoy shopping centre and Hong Yi Plaza.

Among them, the Yalan center optimization project in Mong Kok is estimated to be HK $two hundred million. The renovation plan is expected to be completed in the first quarter of this year. The Fashion Walk investment in Tongluowan is about HK $300 million, and is expected to be completed in the fourth quarter of this year.

Chen Jiayue expects the completion of the Jalam center and Fashion Walk to bring about 50% to 60% rent growth for Hang Lung.

He also stressed that the focus of the tenant portfolio in Mong Kok and Tongluowan was to balance the consumption of local and mainland customers. Therefore, it would not focus on mainland tourists, and Tongluowan's Fashion Walk accounted for 60% of the local customers and the proportion of consumption was similar.

In addition, the renovation of the hilltop Plaza will start next year and is expected to be completed in 2017 to 18 years.