2022-03-29-莱坊-Hong_Kong_Monthly_March_2022_4页_337kb

Office Market

• Overall: Performance in February 2022 (the text covers mid-March 2022 context) weakened due to the fifth epidemic wave's impact, stricter social distancing, and the Huawei rent-deferment scheme causing landlord concerns over intensified competition.
• Hong Kong Island: Despite challenges, demand for premium Grade-A (especially Central) CBD office space remained strong, supported by resilient demand from finance/legal sectors and potential "short-term renewals/restructuring". Leasing activity occurred, e.g., Huawei's Chater House/Microchip lease renewals. Government intervention (potential moratorium) is debated; landlords worry about increased competition, concessions, and lower rents due to deferred payments. Expect buoyant take-up/rents in core areas as rules relax, and a rebound in leasing after the social-distancing period.
• Kowloon / Outer Areas: Leasing market softened further (e.g., Kowloon East saw a significant drop in new leases). Increased cost sensitivity in industries like electronics/sourcing led to postponed decisions. Renewals were lower. Weakens expectation driven by social-distancing (canceling inspections), economic uncertainty, and the epidemic ravages/rising unemployment. Leases and prices cooled, with moderate downward adjustments expected unless special transactions occur.

Residential Market

• Overall (February 2022): Market activity froze severely due to the fifth wave, worsening economic conditions, and social-distancing measures. Sales plunged MoM (units down 55.5%, consideration down 31.9%). Sales momentum lacked in both primary & secondary markets due to buyer/seller caution and viewing challenges.
• Luxury Segment: More resilient, driven by notable transactions like the record-bid The Peak unit. Demand prospects remained stable.
• Mass/Hinterland: Under severe pressure from the challenging economy (sentiment dented, buyers cautious due to uncertain stock market/rising unemployment? Note: Hong Kong market activity froze but economic data may also influence sentiment). Sales dropped MoM. Rent-demand remained cautious due to economic factors including likely prolonged impact of pandemic on consumer spending and the uncertain economic outlook. Sellers offered more negotiation room.
• Rental Market: Generally supported by local demand due to border closures (especially those away from the city appealing to expats/Mainland Chinese). No specific rental index graph provided for February 2022. Luxury rentals saw some noteworthy quotes (e.g., Mid-Levels Harmony). Overall rental market anticipated pressure due to sustained economic uncertainty.

Retail Market

• Overall: The fifth wave outbreak continued to weigh on the retail sector. Unable to gauge rent for February 2022 index.
• Sales: Reported an uptick in total final retail sales value in January 2022 YoY, potentially due to government vouchers boosting daily necessities, but perhaps low base effect.
• By Category: Some categories showed significant setbacks, while food (ex-supermarkets) saw the largest increase, likely boosted by gas/drink price hikes earlier that year.
• Recovery: Relied on government support like consumption vouchers and planning for a rental moratorium in the Budget. Retail activity/regaining momentum expected once pandemic stabilises.