Measured yet steady market stabilisation in a year of continued recovery, renewal and reset
Despite continued disruption, Hong Kong’s economy saw a significant rebound and grew by 7% YOY in the first three quarters of 2021.
In the context of renewed social distancing, we expect a more moderate start in Q1 2022, with momentum gathering pace from Q2 2022 onwards. It is anticipated that Hong Kong will continue its roadmap to recovery providing real estate stakeholders with an opportunity to evaluate their position to leverage the market and act.
Core highlights:
- Overall office rent to recover by around 1% YOY with occupiers still seeking cost-effective real estate strategies, the opportunity to leverage vacancy in Central and flight-to-quality options
- Industrial warehouse vacancy to remain low, with future supply expected to be limited in 2022. Several prime logistic centres are close to full-occupancy and landlords are looking to firm up their asking rents in 2022
- Recovery for retail is hinging on the pandemic and borders re-opening. Local consumption will remain the key demand driver in the next 12 months
- The investment market is seeing very strong pent-up demand and high liquidity. Overall investment volume to further pick by 15% in 2022, estimated at HK$84 billion
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