213 views

Is the retail property market on its way to redemption?

In January, retail sales value jumped 4.1%YoY to $33.9b.

Despite a 4.1% YoY jump in retail sales value in January, Knight Frank said redemption for the retail property market might only happen after March.

In a report, the analyst said the fifth wave will likely peak in March and will only coo down in the months after.

Once the fifth wave recedes, Knight Frank believes consumer sentiment will rebound, whilst retailers and restaurant operators will gradually regain confidence.

Meanwhile, measures have been put in place by the government to support the retail market amidst the ongoing fifth wave including the disbursement of $10,000 in consumption vouchers to over 6.3 million residents.

This move, however, won’t be able to effectively boost the total retail sales and stimulate the city’s economy, according to Knight Frank.

“Based on the previous experience, people will use the consumption vouchers mainly for daily necessities rather than on discretionary spending,” Knight Frank said.

The proposed rent enforcement moratorium in the 2022/23 Budget on rental deferment for tenants in specific sectors might also aggravate the poor market environment in the real property market, since it may put pressure on both tenants and landlords.

Knight Frank said retailers and landlords negotiating rental relief measures on their own would better suit the “situation of each individual leasing deal and maintain the city’s non-intervention market principle.”

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!