Hong Kong

The market’s absorption capacity will be tested next year.

The aging population is impacting supermarket retail sales performance.Hong Kong's retail market is experiencing a significant decline, with total retail sales in the first ten months of 2024 estimated to have dropped by 7.1% compared to the same period last year, according to Knight Frank.

Demand is expected to be weak in 2025.

And annual land premiums are expected to reach HK$10-15 billion.

Analysts believe the market has yet to reach its bottom.

The total sales value was over HK$37 billion.

The 2.8m sq ft of new supply will take time to absorb.

Rents are expected to decline by up to 5% in Q4.

The ultra-rich are also expected to set up family offices in the city.

The Dorsett Kai Tak and the Metropark Hotel are notable expected openings.

Small to medium-sized units dominated the leasing market.

Transactions dropped 22% MoM to 2,848 during the month.

Major brands expanded their lease in shopping malls and streets.

Vacancy rates remained high at 13.4%.

The vacancy in Central hit a net area of 2.2m sq ft.

The transactions had a total value of nearly USD200 million.