Retail Market Rebounded with 30% Sales Increment in February
Highlights of Office Market:
- Citywide rents down 24.4% from the last peak in 1Q 2019
- Negative net absorption of 900,000 sq. ft.
- Availability at record high of 14% since 2Q 2004
- Forecast rents to decline further till the end of 2022
Highlights of Retail Market:
- Local demand drove retail sales up by 30% Y-o-Y in February
- Short-term leases improved high street occupancy
- Rent adjustment will continue throughout 1H 2021
- Forecast gradual recovery mainly driven by F&B sectors
HONG KONG SAR – Media OutReach – 12 April 2021 – While office and retail rental performance went in the same downward direction, retail sales picked up gradually from the already-bottomed baseline since 4Q 2020. Retail sales rose by 30% in February 2021, whereas office rental was driven down further by 17.6% in 1Q 2021 Y-o-Y as a result of the downsizing trend since 2020. Yet, the market has been active with large occupiers shopping around for more cost-effective office space as alternatives.
https://www.linkedin.com/company/cushman-&-wakefield-greater-china).
