It is estimated to have grown by 3.2% YoY to nearly $320b last year.
Local consumption has emerged relatively unscathed from 2020, with domestic spending estimated to have grown by 3.2% YoY last year. That helped it to hit nearly $320b, a 15-year high, according to Savills.
This comes as Hong Kong’s retail sales turned around in the first two months of 2021 with total sales value up by 2.7% YoY despite the impact of the fourth wave of COVID-19 infections and the absence of international visitors.
Sales of electrical goods performed best in Q1, growing by over 34% YoY, followed by sales of fresh food items, and furniture and fixtures, possibly driven by work-from-home and dining at home demand.
Meanwhile, the supermarket segment has fallen by 8.6% YoY, which may be attributable to a decline in sales of festive gifting items over Chinese New Year. The decline is a reverse from the growth trend seen in the previous quarters.
According to Savills, the leasing market showed early signs of revival in Q1 whilst consumer sentiment and business confidence have been gradually improving.
“As the worst looks like it is behind the retail market questions surround the rate of turnaround and what changes will prove permanent,” Savills Asia Pacific regional head of research & consultancy Simon Smith said.
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