Hong Kong Major Report - Hong Kong Market Outlook 2021
Hong Kong’s economy will gradually recover from a low base in 2021, supported by a solid rebound in China. While the prolonged pandemic, absence of cross-border visitors and geopolitical risks will all continue to create strong headwinds, the expected launch of a local vaccination programme in February should instill greater confidence in the outlook.
Corporate cost-saving coupled with high vacancy will prevent a rental recovery in the office market in 2021. Corporates will need to closely monitor space utilisation over the course of the year as they plan long-term office strategies ahead of the 2022/2023 supply boom.
Low consumption demand will continue to weigh on the retail property market in 2021. Any recovery rests upon the eradiation of the local pandemic and the resumption of cross-border travel.
Any recovery in global trade demand will likely be milder than that witnessed after previous troughs. Rapid growth in online shopping will spur stronger logistics demand from e-commerce operators. There will also be robust demand for data centres and cold storage.
A gradual economic recovery, reduced transaction costs and banks’ greater willingness to lend will support a slight increase in transaction volume in 2021.