Border reopening boosts retail sentiment: CBRE

Asking rents in tourist hotspots have increased since January.

The reopening of borders and easing of health requirements have led to an improved overall retail sentiment, CBRE reported. 

“After the border reopening, tourist volume has significantly increased, boosting both the general retail market and the broader economy. The overall retail sentiment has improved,” Lawrence Wan, Senior Director, Head of Advisory & Transaction Services - Retail at CBRE, said. 

He noted that landlords have started increasing their asking rents, particularly in tourist hotspots such as Tsim Sha Tsui and Mongkok. 

In some cases, asking rents have even gone up to 20-30% or higher. 

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“As the mainland tourists have gradually returned, luxury watch and jewelry brands, pharmacy and healthcare sectors have rebounded noticeably among the general retail trades,” he said.

“Some Chinese banks have also moved their retail branches to high streets of core districts.”

Meanwhile, the fresh round of $5,000 consumption vouchers the government will release are expected to have limited and short-term impact on the market.