Retail

Trends to Watch

1. Mainland Chinese Consumer Recovery

   Consumer spending in the Greater China region will rebound after dipping in 2022. However, other markets will see weaker growth stemming from heightened global economic uncertainty and diminishing tailwinds from the post-pandemic re-opening.

2. Strong expansionary demand

   While 71% of retailers plan to open more stores, retailers will remain prudent in extending their presence in new markets. Space in prime assets will remain keenly sought after while interest in secondary retail will strengthen.

3. Mild rental growth

   Rents in all markets will return to growth in 2023 but increases will be mild. Retail units in city centres will outperform those in decentralised locations. The potential for rental upside will be more pronounced in mainland Chinese tourists’ preferred destinations, such as Hong Kong SAR and Tokyo.