Shops 'need 75 Percent Rent Cuts For Up To A Year'

The Hong Kong Retail Management Association has called for rent cuts for up to a year, as the battered sector made a fresh appeal to landlords for relief amid the coronavirus outbreak.

In an open letter published in newspapers, the association says the retail trade has suffered an 80 percent drop in revenue amid the pandemic.

The association’s CEO, Annie Tse, told RTHK's Wendy Wong that landlords should lower rents by up to 75 percent for up to a year to help the trade ride out the tough times.

She said before the third wave of infections hit Hong Kong, landlords were offering fewer concessions to tenants as the economy appeared to be on the mend. But she said the trade has since taken another battering.

"Up to now, I would say a majority of tenants are not getting any help from their landlord. They even get legal letters from the landlord, chasing for the rent to be paid, talking about 100 percent of the rent," Tse said.

"I think it's the right time for us to speak up again, to call for attention and also to give pressure to the landlords, and hopefully they'll be able to offer some help to all the retailers."

She spoke about cases in which landlords would only agree to rent concessions if the lease is extended. "In this Covid-19 situation, it is quite impossible for tenants to be able to give anything back to the landlord because everybody are facing such extreme difficulties," Tse added.

She said many shops have already gone out of business, and more could be shut down if the economy fails to improve.