High street rents to grow 8% in 2023: Colliers
This comes as Hong Kong and China reopen their borders
High street retail rental is projected to grow by 8% in 2023 as Hong Kong and China reopen their borders, Colliers reported.
Colliers noted this growth will particularly be more notable in the second half of the year.
“The retail market will face an optimistic sanguine sentiment in 2023. Upon the Hong Kong–China border reopening from 8 January, we should see a notable recovery in H2 reflecting a full-year rental increase of up to 8%,” Cynthia Ng, Head of Retail Services at Colliers Hong Kong said.
“High street shop performance will pick up steadily whilst neighbourhood malls will continue to grow supported by a strong local consumption market. A close eye should be kept on the drive and spending pattern of inbound tourists, especially in the upcoming months.”
In 2022, total retail sales dropped slightly by 1.1% year-on-year for the first 11 months, but several sectors recorded positive YoY growth, including medicines & cosmetics (+2.2% YoY) and jewellery & watches (+0.7% YoY). Restaurant receipts which recovered in H2, resulting in F&B becoming one of the key leasing demand drivers, while Causeway Bay had a positive 1.7% YoY rental growth among all high street districts.