, APAC
357 views
Source: CBRE

Top 3 cross-border destinations retailers eye for expansion

Hong Kong and Singapore are tied for second place. 

Most retailers prefer Tier 1 cities in Mainland China as the destination for their cross-border expansion in Asia Pacific, CBRE reported. 

This is followed by Hong Kong and Singapore, which tied for second place, according to its 2023 Asia Pacific Retail Flash Survey. 

“China and Hong Kong are forecasted to enjoy the strongest sales rebound after lifting pandemic-related measures. Retailers are positive yet believe the rebound is in sight but will happen gradually over a longer period,” Lawrence Wan, Senior Director, Head of Advisory & Transaction Services – Retail, CBRE Hong Kong, said. 

“The return of Mainland China tourists to Hong Kong will give a strong boost to the sector. This is expected to drive leasing demand and rental growth, especially for tourist-oriented retailers.”

Read more: Investment market in Hong Kong’s retail space ‘quiet’ in 2022: JLL 

The report found that retailers in the region have an increasingly optimistic outlook with 72% of the retailers expecting their sales to rise from 2022 and 71% intending to open new stores despite rising costs.

It also reported that nearly half of retailers surveyed expect physical store footfall to return to pre-pandemic levels. 

CBRE noted that in particular, retailers prefer quality retail spaces in shopping malls and along prime high streets. They also have higher interests in secondary high streets (37% in 2023 vs 23% in 2021) due to their lower rents as compared to prime locations.

“Retailers should also work with landlords for flexible leasing arrangements or fit-out incentives to manage costs,” he said.

 

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!

Exclusives

HK scraps MPF Offsetting Scheme to enhance employee protection
Starting 2025, employers are no longer allowed to offset long service and severance payments from its Mandatory Provident Fund contributions.