Evaluating type(s) of asset enhancement makes the shopping centers more competitive

Abstract

Shopping Centers play an important role in the lives of Hong Kong people. Due to the rapid economic growth, lifestyle and the shopping behaviours of the shoppers has also changed accordingly. There are various thousands of shopping centers in any types and scales in Hong Kong and thus they are facing violent competition among themselves. In such connection, attracting of new shoppers and retaining of the existing customers are important to increase the patronage and rental income of the shopping centers. Additionally, any property will be decayed and deteriorated as time passed. In other words, buildings cannot have an infinite economic life. Hence, assets enhancement works are carried out by the property developers and business owners to improve the physical condition and enhance the market value of the shopping centers. The attractiveness and competiveness of the shopping centers can therefore be maintained. Different types of assets enhancement are adopted by the property developers and business owners. Some types can significantly make the shopping centers more competitiveness, while others might not make a significant contribution on the increasing of the attractiveness of the shopping centers. This dissertation will concentrate on the discussion of the types of the asset enhancement implemented for the shopping centers and find out the type(s) of asset enhancement which make the shopping centers more competitive. Two of the properties of the Link Real Estate Investment Trust ( The Link REIT) named Choi Ming Center situated near the Tiu Keng Leng MTR Station and Hau Tak Shopping Center situated near the Hang Hau MTR Station are selected for case study. Both of these two shopping centers are completed the asset enhancement works and the types of asset enhancement will be explored in this dissertation for comparison. Survey are conducted with visitors of Choi Ming Center and Hau Tak Shopping Centers to obtain their satisfaction level towards the improvement of accessibility, visibility, facilities and equipments and re-planning of space and layout in the selected properties. Besides, the respondents were also asked to rank the importance of these types of asset enhancement for affecting their visit to the shopping center. In addition, in-depth interviews were conducted with visitors and tenants of these two shopping center to collect their view on the asset enhancement work of Choi Ming Shopping Center and Hau Tak Shopping Center. Lastly, recommendation has been made for the developers and owners to strategically plan for their future asset enhancement work and also the marketing strategies in order to response to the demands of their target group since the factors causing the success of shopping center is interdependent and neither one should be overlooked. Besides, continuous asset enhancement work should be carried out and the marketing strategies should be adjusted to generate higher patronage and investment returns in the ever changing environment.