The Asia Pacific retail property sector has embarked on a recovery journey following the disruption of the global pandemic. As regional economies navigate post-COVID realities and opportunities, a closer analysis of 2023 reveals the differences which have emerged between individual markets. While most of them found a sure footing in 1H/2023, recovery trajectories have since diverged. Destinations enjoying a faster return of international tourism saw a noticeable uptick in rents in 2H/2023, with Hanoi (5.7% HoH), Osaka (5.4% HoH), and Hong Kong (3.2% HoH) registering the highest growth. Meanwhile, major consumer hubs, such as Tokyo, Shanghai, Shenzhen, and Taipei, remained largely flat. Seoul was the only outlier facing rental declines, down 5.9% HoH, owing to sustained vacancies and a dip in consumer spending amid the inflation shock. As landlords competed to secure quality tenants, this gave rise to more flexible lease terms across most markets, including turnover-based clauses in prime retail premises.

With the rebound unfolding more gradually than anticipated, we ask if there are reasons for hope and if so, when full recovery may transpire?