Office: Downsizing was the dominant theme in Q1 with many corporates revisiting space requirements. Negative net absorption of 900,000 sq ft represented the steepest quarterly decline on our records, sending availability to 14%.
Retail: Total retail sales grew 2.7% y-o-y for January – February. Short-term leasing strategies effectively eased vacancy in core areas, Causeway Bay falling 2.6 pp q-o-q. Overall average rents continued to soften. Resumption of tourism remains key to recovery.
Investment: Industrial assets led the market, with PERE funds notably active. Office property transactions declined sharply, although investors embraced retail opportunities to send volume to HKD1.6 billion, up fivefold y-o-y.
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