Used to be the changlong square of the ceiling of the industrial mall, it is now facing a high vacancy rate. According to the 2024 financial paper published earlier in the day of the changlong real estate (00101. Hk), the year-end rental rate at multiple malls is worrying. For high-end malls, the rent rate was only 85 per cent at the end of the year and 87 per cent at shenyang city capital; for three high-end malls, the rent rate was only 90 per cent at the end of the year at shenyang city and tianjin square and 93 per cent at chinan changlong square。
New yellow river journalists visited the mall a few days ago and found that there are approximately 37 businesses on the eastern and western wings of chinan shenzhiro square, with an overall vacancy rate of approximately 10 per cent, based on the current number of 350 shops in shenzhiro. As a representative of the sub-high end of the group, after a three-year asset optimization plan, chinan shenglong square has performed below expectations in terms of upgrading, and increasing the rental rate is the first challenge facing the enterprise。
Three years of optimization has led to online outcry, and field visits have revealed that nearly 40 shops are idle
“it's been a long time since he was here, and it's been my impression that the ceiling of the chinan mall existed, that when it opened, it raised the fashionable index of chinan city, but it's really disappointing now.” earlier, on social networking platforms, a friend of the internet, "holder deutsche q7", had released news that he had been upgraded last year, but actually felt that it was becoming more "cheap." “it was a simple and able business luxurious style, with a little sense of technology and the sense of the future, and now it seems like a walk in a light luxurious style, with a whole small family, a plethora of floors, and a lot of cheap modifications in public space. The only thing that i felt was to lift the rails from logs to han baiyu, which at first glance looked good, and then looked back at old ground.” in response, a lot of praises were expressed to the network, expressing disappointment at chinan shenzhiro square from different angles。
In fact, since 2021, since the launching of the three-year asset optimization programme in chinan shunlong, especially with regard to hardware facilities, it has been described as the integration of modern design language with the local culture of spring city, from bricks to smallpox, from the courtyard to the bathroom, especially the middle street road connecting the east and west wing of the mall, with the addition of light, greening and leisure seats. However, after voting on foot, customers were not satisfied with the mall's renovation plan。
Businesses suffer more from the vacancy rate in the shop at hanlong square than from the expected upgrading of the mall。
According to the newspaper for 2024, published before the day of the han long estate, wuhan hanlong ranked first in the bottom of the country's 10 malls at the end of the year, at 85 per cent, an increase of 3 percentage points compared to the end of 2023, and shenyang city, at 87 per cent, an increase of 6 percentage points compared to 2023. As representatives of the high-end malls, such performance has undoubtedly delayed the overall performance of the changlong estate。
In addition, the press shows a 93 per cent rent rate at the end of the year in chinan shenzhiro square and a 1 per cent decline in the overall sales of tenants. Against the backdrop of weak consumption and increased competition in the market, the mall had to add more brands of make-up and sports and leisure clothing, hoping to improve its attractiveness and profitability to its customers, but with little success。
A recent visit by new yellow river journalists to the mall revealed that there are currently 37 vacant businesses on the east-west wing of lung ryong, and that there are more concentrated east-wing vacant shops in the middle and high-end brands than on the west wing. In particular, there are currently 9 vacant families on the first floor of the east wing, 6 vacant families on the second floor, 3 vacant families on the third floor, 2 vacant families on the fourth floor and 7 vacant families on the fifth floor; 1 vacant house on the west wing, 5 vacant families on the second floor, 2 vacant families on the fourth floor and 2 vacant families on the fifth floor. The 6-7 floors of the cinema and catering industry are empty, with an overall vacancy rate of about 10 per cent, calculated on the basis of the current number of stores of around 350。
Of these empty shops, no indication was given of the opening of the new brand except for two. “some shops closed down a few years ago, such as a long-standing jewellery brand on the third floor and a restaurant brand on the fifth floor, which says they're moving silver seats, but some have been vacant for at least months. A shopkeeper at the mall said: new yellow river journalists have observed that these vacant vendor areas are mostly small inside the lung, with some medium sizes but no large shops。
The rate of renting off first-line urban office buildings dropped to 87 per cent, and there was an urgent need to resolve the issue under the pressure of performance
In fact, the problem of vacancy rates has been plaguing the land estate for many years。
For example, in 2024, rental income from the shanghai changlong square mall fell by 6 per cent to hk$1,648 million, while income from office buildings fell by 9 per cent to hk$606 million. The rental rate at the mall fell from 100 per cent to 99 per cent, while the rental rate for the office building decreased from 96 per cent to 87 per cent. In the case of office buildings, the group explained that it was mainly due to the expiration of several large leases, combined with weak market demand and oversupply。
In addition, one of the figures in the annual financial statements of the han long estate is a 4 per cent drop in the revenues of high-end malls. The weak market for luxury goods has constrained sales at some high-end malls. “the decline in sales rents is due mainly to the weakening of consumer confidence in the luxury markets, as well as strong price promotions by competitors in some cities. "sunlong property is a sign。
On the sub-high end, the overall rental rate is also very worrying in historical terms. In the case of chinan shiro, for example, public information indicates that in 2014 some businesses were evacuated as a result of the expiration of the contract, with a once high of about 30 per cent vacancy rate, and since then the rental rate has risen to 90 per cent, with an additional 20 per cent vacant in 2016。
In the second half of 2022, after the completion of the first phase of the assets optimization plan, revenue and tenant sales increased by 3 per cent and 31 per cent in the first half of 2023, respectively, but in the first half of 2023 the rate of 89 per cent of leases declined from 2022 to 93 per cent at the end of december 2023 and to 92 per cent at the end of june 2024, and the overall rate of leases remained below its desirable level。
Market rental rates remain unsatisfactory and slow down overall group performance。
According to the financial report on the capital of the city, its total revenue in 2024 amounted to hk$ 11,242 million, an increase of 9 per cent over the previous year; the overall operating surplus fell by 13 per cent to hk$ 6,455 million. As a result of the weak retail and office rental markets, property rental revenues and operating surpluses decreased by 6 per cent and 9 per cent, respectively, to hk$ 9,515 million and hk$ 6,763 million。
“the fall in revenues from our own businesses is mainly affected by the intended decline in market consumption and the rise in tourism outside the country. The 6 per cent drop in the revenue portfolio of our senior office buildings is due to intense market competition and reduced office space requirements. "sunlong property is a sign。
In the face of the problem of vacancy rates, the lung side remains optimistic. “we continue to promote top markets and to strengthen our ties with faithful customers through the membership scheme, the "henlong club", while attracting new customers.” it also states that “at the sub-high end of the mall, we will take advantage of the positive trend of optimizing the combination of tenants leading to rising rental rates”
At present, the market competition facing chinan xinlong square is becoming more intense. For example, the rise of businesses such as vientiane city, located in the eastern part of the country, has led to increased competition in the chinan retail market. As another gathering place, vientiane has won the favor of the younger generation. How to increase the rental rate while maintaining an advantage in fierce market competition will be key to the future development of han long square。
(reporter sow, li chihong)
