A sanguine rebound in H2
The retail market faced a rocky start in early 2022 as most remain cautious with the outbreak of the fifth wave of the pandemic and subsequent social distancing rules. Looking ahead, the upcoming consumption voucher distribution (Phase II) in August and the likelihood that the city’s rules for incoming travelers to be further relaxed may support the retail ambience in H2 2022.
- Core high street shop rents adjusted downward in Q2 by 0.4% QoQ, resulting in a -2.4% YTD rental drop in H1 2022
- Local consumption will remain the key purchasing power, with more F&B brands expected to enter the market along with supermarkets, home living and leisure, which will all remain as key leasing demand drivers.
- The full year’s retail rental recovery is expected to be within 5% in 2022