According to market experts, 2023 is expected to be a year of recovery following the stormy pandemic, marked by increasing activity and demand across commercial real estate sectors. The quarantine-free border reopening between China and Hong Kong is set to take place in phases, starting in January, a decision likely to drastically revive the retail scene.
The gradual normalisation following the border reopening, coupled with the expected peak of interest rates in the second half of the year anticipates new investment and occupier demand. While little uncertainties in the global economic outlook and interest rate remain, this gust of demand is expected to provide a strong morale boost to business sentiments in Hong Kong.
Office and Retail Leasing to Accelerate
Both office and retail leasing momentum are expected to accelerate throughout the year. The demand for office spaces is expected to increase as businesses resume operations and expand their operations, with particular attention from Chinese firms after the reopening of borders.
The recovery of retail sales in Hong Kong is also expected to increase demand for retail spaces. This is particularly true for prime retail locations in core areas of the city, where visitors and locals alike will likely frequent after the past year of retail deprivation.
Capital value trends will depend on the demand-supply balance of individual property sectors, with upside potential, particularly for retail properties.
Positive Outlook Despite Uncertainties
The outlook for the Hong Kong real estate market in 2023 looks positive despite uncertainties in the global economic outlook and interest rate hikes. The market is expected to see increased activity and demand across different sectors in 2023.
#marketinsight #2023officerealestate #futureoutlook #hkrealestate