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The retail end of the uber-costly Hong Kong market has run into rough weather, and disgruntled landlords are contemplating a class action suit against the guy who assures the silver lining thingy.
With rentals at their lowest in more than a decade, an upcoming law may make life miserable for suffering retail landlords.
What’s the problem?
😔 A proposed law may allow a 3-month moratorium on rental payments. Those renewing rentals won’t be eligible, giving them bargaining rights galore.
😔 Property owners are offering discounts of 30-50% to retain tenants.
😔 Developers/landlords face insurmountable struggles in getting rentals back to pre-pandemic figures.
😔 Retail rental incomes have fallen amidst strict COVID curbs that are already hurting the office and residential sectors.
😔 Vacancy rates climbed to 11% in March 2022, while rentals continue to plunge significantly.
What lies ahead?
The proposed bill may become a law on 27th April, and with unhappier developers/landlords exiting businesses, the nightmare could continue, fuelling the desire for that legal action.