What is happening with Retail across Asia?
The Italian Chamber of Commerce in Hong Kong and Macao, in partnership with Savills and the Italian Quality Lifestyle Council, hosted an insightful breakfast talk focusing on the retail market across the Asia Pacific, highlighting perspectives from China, Hong Kong, Japan, and Thailand.
Gratitude goes to our esteemed speakers from Savills: Simon Smith, Regional Head of Research & Consultancy, Asia Pacific, and Nick Bradstreet, Head of Retail, Asia Pacific, for sharing their expertise.
Key takeaways from the session include:
While the retail downturn seems largely over in the region, recovery has been soft but is showing early signs of gathering momentum.
We are anticipating falling interest rates, stronger economic growth, and the return of regional tourists, especially from China. Fewer geopolitical tensions would certainly help!
Despite the generally subdued sentiment, there are bright spots. In China, domestic tourist numbers are above pre-covid levels, while in Hong Kong, Hongkong Land is spending over US$1 billion in a major renovation of its Central portfolio. Japan continues to enjoy the benefits of a weak Yen with record visitor spending and lastly, Bangkok is looking forward to the completion of some large-scale mixed-use projects over the next year or two.
Looking ahead, most markets are either in a late downswing or early upswing, with recovery expected to gather momentum next year. Long-term, Asia-Pacific remains a powerhouse with youthful demographics, a rising middle class, rapid urbanisation, and an unparalleled growth story.
