Cautious retailers, especially in the luxury sector, characterised the market in Q4 with few willing to commit until borders reopen.

• For the retail market 2021 was another year best forgotten as some of the world’s tightest travel restrictions and ongoing social distancing measures weighed on sentiment.
• With tourists absent from Hong Kong’s streets, the year was all about catering to local demand with F&B probably the biggest winner.
• Rents seem to be bumping along the bottom as vacancy continues to nudge up.
• Supply of new retail malls in 2021 was scarce offering some scant support to rents.
• 2022’s fortunes will depend on border opening but at the time of writing this looks unlikely to the extent it would impact retail demand.
• So 2022 could look quite similar to 2021. A grim prospect for sure, but on a more positive note, any subsequent easing of restrictions could set us off again on a post-2003 trajectory of record breaking growth.