We are so minuscule we are close to non-existent in contributing the GDP of Hong Kong, but will we be a sitting duck should the global recession kicks in. Staying naive may keep our spirit alive, we are but a microscopic bacteria when facing an entity called the Globalisation.
The Federal Reserve may or may not raise the interest rate within this year, but what about next year? Is the rising interest rate good for us? We honestly don’t know. We know the low rates excite the property price to a whole new level, and it directly relates to the rental !!
The new influenza from Korea is like a boogie man trying to bash his way into Hong Kong. If it gets in, things are going to be really ugly. Last time when SARS hit Hong Kong, it was apocalyptic for the retail sector.
Political instability is giving Hong Kong a constant seismic activities. We don’t know when it will explode, if ever, in our face. The Asia’s mighty Four Little Dragons of yesteryears; Korea, Taiwan, Singapore and Hong Kong, and looking at where we are today. It appears HK is lagging behind, while Shanghai, Shenzhen, and Beijing are most certainly a few steps ahead of HK.
Looking at things on a smaller scale, our neighbourhood, the Kau U Fong of Central, has been booming and evolving into a new shopping district. Unlike the conventional malls, Kau U Fong focuses on promoting niche lifestyle, a rare breed of neighbourhood in Hong Kong. Tenancy within the area is limited to 2 years period, and after each contractual period the rent would go up substantially which always almost resulted in having new tenants.
For the first time in the last 6 years, the cycle of tenancy loop, it appears, is slowing down. We see more emptied shops around the neighbourhood. Is this because the rent is too high? is there a larger scheme we don’t know? or is the business simply not sustainable? A lot of questions are spiralling wildly across our mind.
Survival is the only answer we can give to ourself. Change to adapt is the key to survival. And the question is, what do we adapt to?