Hong Kong Landlords Brace for Even Deeper Cuts to Retail Rents

  • Owners have cut some rents by 50% to keep tenants, agent says
  • Proposed moratorium gives retailers more bargaining power
WATCH: Lan Kwai Fong Group Chairman Allan Zeman discusses Hong Kong’s relaxed Covid restrictions as well as John Lee’s campaign for Chief Executive.Source: Bloomberg
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Hong Kong’s retail landlords are bracing for a further squeeze on the lowest rents in more than a decade as tenants seek relief in the aftermath of the city’s worst Covid outbreak.

Some tenants have already started renegotiating leases by exercising bargaining power ahead of a proposed law that will allow a moratorium on payments. Government pressure and the need to keep retailers’ businesses afloat have also prompted property owners to offer discounts, analysts say.