• 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.