Turning point for Hong Kong retail space
In this article (4)
For the first time in five years, the demand for retail space in Hong Kong has not declined.
Results from the RICS (Royal Institution of Chartered Surveyors) Hong Kong Commercial Property Monitor for this year’s first quarter indicate that the demand for retail space has not changed from last year’s fourth quarter.
The Occupier Sentiment Index (OSI) increased modestly to 14 from 10 the previous quarter, while the Investment Sentiment Index (ISI) grew six points to 19.
There was a moderate increase in the number of retail properties available or rent, with respondents reporting an increase in landlord incentives for retail space.
“Occupier demand continued to rise at a headline level for the first quarter,” says RICS Hong Kong external affairs committee member Frank Wong.
There was a minor decrease in foreign demand for retail properties.
Questions & Answers
Q.Has the demand for retail space in Hong Kong been consistently falling before this period?
Has the demand for retail space in Hong Kong been consistently falling before this period?
Yes, this quarter marks the first time in five years that the demand for retail space in Hong Kong has not declined, indicating a previous trend of decreasing demand.
Q.What do the Occupier Sentiment Index and Investment Sentiment Index figures indicate about the retail property market?
What do the Occupier Sentiment Index and Investment Sentiment Index figures indicate about the retail property market?
The Occupier Sentiment Index rose modestly to 14 from 10, and the Investment Sentiment Index increased by six points to 19. These figures suggest an improved outlook among occupiers and investors.
Q.Are landlords currently offering incentives for retail properties in Hong Kong?
Are landlords currently offering incentives for retail properties in Hong Kong?
Yes, respondents reported an increase in landlord incentives for retail space. This coincides with a moderate increase in the number of retail properties available for rent.
Reader pulse
What best describes Hong Kong's retail property outlook?
22,650 votes so far