Signs of a pull-back have been most noticeable in high street shop rents which fell marginally by 0.2% in Q2.
Lower mainland per capita spending, more same-day visitation and fewer ‘super-luxury’ purchases are having an impact on some trades, particularly single brand watches and high-end leather goods.
In contrast, shopping centre rents posted an impressive 5.1% growth in Q2, driven mostly by New Territories malls which continue to move upmarket.
More generally we are seeing a period of rental adjustment after years of exceptional growth as landlords and retailers reset rental expectations.
Shopping centres are expected to continue to outperform over the remainder of 2013 as general market conditions become more competitive.
Source : Savills