Hong Kong Major Report - Hong Kong Market Outlook 2023

January 17, 2023


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After several turbulent years, CBRE expects the recovery of commercial real estate leasing and investment demand to commence in 2023. The phased re-opening of quarantine-free travel between mainland China and Hong Kong will provide a strong boost to local business sentiment, despite continued uncertainty regarding the global economic outlook and future interest rate movement.


01 Economy

The economy will strengthen in 2023 as the border re-opens. Ongoing economic normalisation and peaking interest rates will offset some external uncertainty and support the recovery of commercial real estate demand.


02 Investment

The border re-opening will boost investment market sentiment. While investment volume will remain thin in H1 2023 due to high financing costs, activity should improve in the second half of the year as the economic recovery gains momentum.


03 Office

Improving business sentiment and travel normalisation will help accelerate office leasing momentum in 2023. However, cost control and rising vacancy will weigh on rental growth.


04 Retail

Market sentiment will strengthen in 2023 along with the return of mainland Chinese tourists. Any expansionary demand will likely be led by tourist-oriented retailers.


05 Industrial & Logistics

The border re-opening will boost cross-border trade demand and benefit Hong Kong’s trade and logistics sectors. However, recent strong rental growth will limit many occupiers’ rental affordability.