2023-10-30-莱坊-Hong_Kong_Monthly_October_2023_4页_248kb

Office Market:

• Leasing: Activity remains soft, especially in Central, with declining net effective rents (HK$HK$67.1 psf in September). Causeway Bay and Central experienced the largest year-to-date (YTD) rentals declines. Small/large office space (below HK$22/psf) saw demand grow for upgrades/expansions. Law firms actively seeking small to medium space in Central.
• Vacancy: Vacancy rates are patchy. Wan Chai saw reduced vacancy (9.8% in Sept from 10.6%), with owners signaling rent increases. Some districts show stable low vacancy.
• Future Outlook: Leasing activity subdued without stimulus; office demand focused on prime locations for upgrades. Quality office buildings remain key.
  Residential Market:
• Sales: Activity subdued. Sales volumes down significantly MoM (-27.5% for secondary, -11.9% overall), though primary sales saw a smaller increase, potentially due to developer promotions.
• Prices: Prices continued falling (-1.4% MoM, -1.1% YoY) for the fourth consecutive month and fourth consecutive quarterly decline. YTD growth slowed slightly to +1.3%.
• Rentals: Rents increased modestly MoM (+1.4%, now 5.6% YTD higher). Class B units performed better than average.
• Activity: Heavy reliance on incentives/tax breaks. Discretionary purchases remain low. Key focus area for Chinese Mainland expatriates: Sai Ying Pun, Kennedy Town.
• Recent Sales: Top-tier luxury properties saw top HK$85 psf psf prices. Stamp duty issues remain the primary barrier.
  Retail Market:
• Sales: Retail sales value improved YoY (+19.3% YoY to HK$32.4 billion). Visitor arrivals significantly increased compared to the same month last year (-14% YoY decline reversed to +14% MoM).
• Mix: Mixed results by outlet type. Clothing sales down sharply MoM; other categories generally stable or positive.
• Tenants: Retailers and landlords cautious. A small unit sold for HK$370m highlighted hopes for single-digit cap rates. Large retail investor activity was limited by inflation concerns.
• Future Outlook: Positive long-term prospects due to tourism recovery and government measures, but note that consumer mentalities are still weak. Retail sales targeted to reach HK$400 billion this year.