Changing China

from George Chen:

Winners and losers as Hong Kong rents scale new heights

By George Chen The opinions expressed are the author’s own.

When you walk around Hong Kong's Central commercial and business district these days, you may notice a number of stores are holding "removal sales", which means they can no longer remain in the same location. The reason? In most cases, just blame soaring rents.

Many analysts have forecast declines in residential and commercial property prices in Hong Kong for next year, although at a stable pace rather than a sharp drop. This may be true for some suburban areas where purchase options are more plentiful than those in downtown areas, but until that happens, prices are likely to keep rising, at least for the rest of the year.

A couple of years ago, mobile phone industry leader Nokia took a moderately sized space on Russell Road in Causeway Bay just opposite Times Square, one of the busiest shopping districts in Asia, for its flagship store in Hong Kong. Local media said the store used to be one of Nokia's busiest in Asia, thanks to mainland Chinese travelers. But the good old days are going to end soon.

The Hong Kong Economic Times reported on October 27 that British luxury brand Burberry had signed a new lease with the owner of a site currently occupied by Nokia. Burberry is said to have agreed to pay HK $6.5 million (about US $836,600) per month for the two-floor 5,200 square foot space,versus the HK $1.8 million that Nokia is paying.

When the news came out, the reaction from the market was quite naturally, "Wow". One reader on Sina Weibo, China's most popular micro-blogging service, wondered: "How many coats and bags will Burberry need to sell to cover the monthly rent?" In Hong Kong, a coat or bag at Burberry usually sells for about HK $10,000-15,000. You can do your own calculations.

Beijing shopping surprises

I love to shop – I’m not afraid to admit it. And I passionately believe you can never have too many T-shirts, shoes or bags (and that you should never underestimate the power of a good moisturiser either).

One of the great joys of living in China, and especially in Beijing, is the shopping.

Sure, it’s not as sophisticated as Hong Kong or as off-beat as Taipei, and very few places in Asia can trump Bangkok, but China’s smokey capital has its charms when it comes to a bit of retail therapy.

So here is a personal list of my favourite top 5 shopping destinations in Beijing, in reverse order to keep everyone in suspense.  

5) Spin. Pottery’s not sexy, right? Wrong. The master craftmen (and women) behind this store sure know how to whip up a storm with the clay. Simple, clean and understated is the order of the day. And it’s not too expensive. Word on the street is a certain well-kown European fashion designer liked the shop so much he snapped up 20,000 sets of plates during a winter swirl through the city. 

4) The cashmere sweater place. Nobody really seems to know what it’s called, but it’s quite well located near the new Dengshikou subway stop. Simply take in a jumper, hat or other top you want copied, pick a colour, and they will produce a copy for you in softest cashmere. It’s very adictive. “I can’t wear anything that’s not cashmere these days,” another cashmere junkie remarked to me recently. And it’s quite understandable. Not cheap, but then luxury never is.

3) This recommendation isn’t one shop, but the part of Beijing’s famous Panjiayuan, or antique market, where they sell old books. I can spend hours here, picking out hidden little gems printed in China’s Communist heyday. This includes glossy hardback coffee table books, sometimes with English text, on China’s provinces. The two books I’m most proud of finding, and have given me the most pleasure, are a book on the remote and rather mysterious province of Qinghai, and another entitled “New China Builds”, full of the brutalist and minimalist architecture that marked the 1950s, 1960s and 1970s.