Fifth wave delays recovery of HK’s commercial property market

Amongst the hardest hit was retail, recording a 6.8% QoQ drop in high street shop rents.
It may take a longer time before things get better for the commercial property market, as the fifth wave slowed down its path to recovery.

Based on JLL's 2022 Q1 Market Review and Forecasts, the market was unable to dodge the pandemic wave with the investment and retail markets being the hardest hit.

In Q1 2022, the investment market saw a decline in volumes of commercial properties by 48.2% QoQ to $101.1b; whilst, in retail, rents of high street shops and overall prime shopping centres dropped 6.8% and 3.1% q-o-q, respectively.
On the other hand, the office market performed well in Q1 2022 amidst the fifth wave with overall Grade A office net absorption reaching 979,800 sq ft and rents rising 0.7%.

Looking ahead, JLL remains optimistic that the overall market will gradually pick up once stabilisation returns and business confidence is restored following the reopening.

In the office sector, JLL expected overall net absorption to improve due to the pre-commitment of new supply. Meanwhile, retail will be supported by leasing demand in F&B, grocery, mass-market fashion and sports & lifestyle trades, as well as experiential retail.

AS for the investment market, the analyst said: "Investors will remain conservative towards office assets as rental recovery will likely remain modest. They will shift their focus to assets with repurposing potential, such as hotels and industrial, or assets which offer higher investment yields, such as elderly homes, cold storage and modern warehouses."

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


‘Wall-less’ office tears down barriers to collaboration amongst AnyMind’s creatives
The office opens up for employees to collaborate, relax, feed off one another’s energy, and enjoy ‘happy hour’ and ‘mental space.’
Auction houses thrive on Asian millennials’ art-buying power
Millennials are seen to be particularly drawn to contemporary art as growth for Christie’s, Sotheby’s, and Phillips are highly anticipated in art hubs Hong Kong and Singapore.
Hong Kong’s livi bank launches game-changing app for SMEs
Going fully digital on opening accounts and approving quick loans to SMEs raises ‘livi Business’ disbursements to over HK$70m (US$8.9m) as of end-April.