Mainland Visitors Return to Hong Kong as High Street Rents Bottom Out
Border Opening Boosts Office Leasing Activities, Although Net Absorption Yet to See Immediate Rebound
- Retail sales rose 17.3% y-o-y in the first two months of 2023, as the mainland China-Hong Kong border opening supported the gradual recovery of the retail market, while visitor arrivals rebounded notably
- High street rental declines bottomed out and vacancy rates dropped during the quarter, yet staffing shortages are limiting retailer expansions
- Q1 overall net absorption of Grade A office space remained negative at -248,000 square feet; rents fell 1.5% q-o-q
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