Rents rise by up to 15pc at APM mall
As leases come up for renewal, rents have risen by as much as 15 per cent at Sun Hung Kai Properties’ flagship mall APM in Kowloon East.
The company has renewed 71 leases involving 230,000sqft (21,400sqm), or 40 per cent of total space, at the Kwun Tong mall since January.
“Rents for these new leases have risen by 10 to 15 per cent,” says Sun Hung Kai Properties (China) executive director Maureen Fung Sau-yim. Average rents at APM range from HK$100 (US$12) to $450 a square foot.
With Hong Kong’s economy improving, she believes retail sales at APM could generate $900 million in the fourth quarter, up about 10 to 12 per cent from 12 months ago.
To capitalise on the upcoming Christmas holiday, the company has upped its promotional budget by 10 per cent to $28 million, aiming to attract sales of $500 million between next week and January 3.
APM has also set up a themed 6000sqft entertainment zone ahead of next month’s release of Star Wars: The Last Jedi.
Hong Kong’s retail sector has posted its biggest monthly growth in two and a half years, rising 5.6 per cent year on year in September. Retail sales grew for the seventh consecutive months as visitor numbers recovered from the mainland.