Retail vacancy in Hong Kong’s busiest districts has reached its highest level in four and a half years
Analysts see no end in sight for Hong Kong’s prolonged retail slump as vacancies reach multi-year highs, with that story leading today’s headline roundup. Also in the news, an Australian tribunal voids management fees charged by a land lease operator and Singapore-based Empyrion opens a data centre in Seoul’s Gangnam district.
Hong Kong Retail Slump to Continue as Shop Vacancy Rises
Retail rents in Hong Kong are expected to remain under pressure, as the trend of residents travelling to mainland China for leisure has led many businesses to opt for short-term leases, experts say after the vacancy rate in the city’s busiest districts hit a four and a half year high.
Analysts on Monday also attributed the mounting vacancies to shifting consumer preferences and the difficulty landlords faced in securing high-value tenants once luxury goods shops, such as watch and jewellery stores, had moved out. Read more>>
Aussie Court Slaps Land-Lease Operator Over Deferred Management Fees
Slugging residents of retirement communities with deferred management fees upon their departure will become harder for land lease operators after a Victorian tribunal ruled against Lifestyle Communities’ hefty bills.
The tribunal found that fees levied on residents were void due to the uncertainty in quantifying their value in advance. Residents complained that what had been marketed as low-maintenance, affordable, resort-style living was marred by excessive fees that were in breach of the law. They also claimed there was a lack of transparency about the fee model. Read more>>
Empyrion Digital Opens Seoul Data Centre
Empyrion Digital has launched a new data centre in Seoul’s Gangnam district. Singapore-based Empyrion said KR1 GDC is the first new data centre development in the district in more than a decade.
After announcing plans in 2022, Empyrion broke ground on the facility in June 2023. Located at 224 Yangjae-dong in Seocho-gu, the nine-storey facility offers 29.4 megawatts of IT load across 30,715 square metres (330,615 square feet). Read more>>
Japanese Department Stores Suffer as Tourists Slow Spending
Once the darling of Japanese stock investors, department stores have lagged the recent broad market rally and could fall further behind as a strong yen dents tourist spending power.
Low confidence stemming from economic uncertainty has also crimped tourist budgets, with data compiled by the Japan Department Stores Association showing that tax-free inbound sales at over 80 department stores across the country fell 41 percent in May compared with year-earlier levels. The number of shoppers also slid, despite the tally of visitors setting a new record. Read more>>
Singapore Retail Sales Grew 1.4% in May
Singapore’s retail sales grew 1.4 percent year-on-year in May on the back of higher motor vehicle sales, data from the Department of Statistics on Friday.
The reading was below the median estimate of 1.8 percent growth from private sector economists polled by Bloomberg. Excluding motor vehicles, retail sales were flat year-on-year in May, lower than the 0.8 percent growth recorded in April. Read more>>
US Real Estate Agency Keller Williams Expands Into Singapore
US-headquartered real estate agency Keller Williams is launching a company in Singapore under its international franchising arm, Keller Williams Worldwide.
KW Singapore will be led by Melvin Lim, the co-founder and CEO of PropertyLimBrothers, operating as a stand-alone business separate from PLB. Read more>>
Frasers Property Vows to Focus on Southeast Asia
Frasers Property, the Singapore-based developer and management company of Thailand’s Sirivadhanabhakdi family, will focus its efforts on Thailand, Vietnam and Singapore to build a resilient portfolio amid an increasingly uncertain global environment.
CEO Panote Sirivadhanabhakdi said the trade environment is increasingly uncertain and conditional, prioritising domestic value creation and compliance with stricter origin rules. Thailand, Southeast Asia and Asia more broadly stand to benefit selectively from this transformation, he said. Read more>>
India Affordable Home Supply Falls to 7-Year Low
India’s supply of houses costing less than INR 5 million ($58,553) fell to their lowest since 2018, a Knight Frank report found, signalling that the trend of developers pivoting away from the segment continues.
The affordable segment saw supply of new housing units plunge to 30,806 in the six months to June, the consultancy said last week. The share of the segment in total housing sales dropped to 22 percent during the period versus 54 percent in the first half of 2018. Read more>>
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