After a five-month battle with COVID-19, Hong Kong is looking toward a post-virus recovery. Social distancing is set to ease in June, with some business establishments gradually being allowed to reopen.

However, the COVID-19 pandemic has weighed heavily on a wide range of economic activities. GDP shrank 8.9% in the first quarter, while unemployment rose to 5.2% in April, its highest level since 2009.

According to Real Capital Analytics, investment volumes for commercial properties fell by 89.5% YoY to US$1,182 million in Q1/2020, with the office and retail sectors registering a drop of 96% and 90% YoY respectively (Table 1). Inbound investment, even from China, has largely ceased.