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Hong Kong Major Report - Hong Kong Market Outlook 2022

January 24, 2022

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Harnessing Growth, Navigating Uncertainty

01 Economy

Economic growth is set to slow from 2021. The main risks are the spread of COVID-19 variants; fund flows and interest rate trends; industry policy on the mainland; and geopolitical tension between mainland China and the U.S.

02 Capital Markets

Investment activity is likely to lose momentum on the back of higher interest rates and the absence of a substantial boost in demand for office and retail space.

03 Office

While office leasing momentum will strengthen if demand from mainland Chinese companies recovers, the supply boom will ensure vacancy stays at high levels.

04 Retail

Assuming the current resurgence in local COVID-19 cases is contained within Q1 2022, leasing demand is expected to remain healthy. However, retailers of big- ticket items will remain cautious for longer.

05 Industrial & Logistics

Logistics facilities will continue to operate at low vacancy, pushing rents to record highs and ensuring this sector outperforms other property classes.