Prime street shop rents in Hong Kong dropped by 1.9%

Rents in first-tier spots also fell.

According to Savills, following a marginal decline in Q2/2013, rents in the prime street shop segment continued to weaken in the third quarter. 

Rents in the first-tier locations of Central and Causeway Bay have fallen in a range of 4% to 7%, while rents in the Tsim Sha Tsui and Mong Kok submarkets held steady over the period, in particular on Canton Road and Sai Yeung Choi Street South.

Here's more from Savills:

Growth in retail sales moderated to 5% year-on-year (YoY) in September the third consecutive month of single-digit growth since July 2013. The "gold rush" instigated by the fall of commodity prices in April and May this year has faded and the end of the practice of "gifting in mainland China continues to affect high-end watch retailers."

Sales growth in jewellery and watches slowed to 5.6% YoY in September, much lower than the average growth of 27.8% seen over 2011 and 2012. Year-to-date, overall prime street shop rents have fallen by 1.9%.