New “0+3” quarantine measure to help reignite business travel, although no immediate boost to tourism activities is anticipated

• Hong Kong's Grade A office market remained generally quiet in Q3, but pre-commitments at new project completions pushed up citywide net absorption to reach 183,000 sq ft
• Overall office rents fell by a further 2.3% q-o-q, although the decline is expected to narrow in Q4, with the full-year rental movement forecast now in a -3% to -5% range
• The retail market is recovering slowly, with retail sales in the first eight months down by 1.5% y-o-y; some retailers have held back on expansion plans in response to a still uncertain timeline for a full border reopening with mainland China
• The recently announced "0+3" quarantine measure will help stimulate outbound spending but may not immediately attract an influx of tourists to Hong Kong, weighing on the short-term retail recovery

HONG KONG SAR - Media OutReach - 6 October 2022 - Global real estate services firm Cushman & Wakefield today published its Hong Kong Office and Retail Leasing Markets Review and Outlook Q3 2022 report.