Hong Kong retail rental market to sink while Singapore’s swims thanks to quarantine-free tourist arrivals, end of Covid-19 restrictions

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Analysts predict rents for retail properties in Singapore will rise by 1 to 2 per cent this year, while Hong Kong will see a decline of between 5 and 15 per cent

The Hong Kong market will not fully recover until the return of tourists, who account for up to 40 per cent of retail sales historically

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Office workers out for lunch break near Raffles Place in Singapore’s business district on May 10, 2022. Photo: AFP

Cheryl Arcibal

Published: 7:30am, 12 May 2022

Singapore and Hong Kong’s retail property segments are likely to see opposite fortunes this year, with the Lion City gaining an upper hand as it eases most Covid-19 restrictions and welcomes tourists back to its shores.

Rents of retail properties in Singapore are likely to rise by 1 to 2 per cent this year, while Hong Kong will see a decline of between 5 and 15 per cent, according to analysts.

The Southeast Asian financial hub has lifted travel curbs, done away with limits on gathering sizes, allowed employees to return to offices, resumed live performances, and reopened nightlife businesses.

This is boosting its retail property segment as residents begin to spend more money at restaurants and entertainment venues. Tourists have also returned to Singapore’s shopping districts because the nation now allows non-residents to fly in without quarantine as long as they are fully vaccinated.

Customers at the Market Street Hawker Centre during lunch hour in Singapore on April 26, 2022. The city has allowed workers to return to workplaces and done away with most vaccination-status checks. Photo: Bloomberg

In contrast, Hong Kong’s retail segment is likely to languish further, with the city sticking to strict quarantine procedures, even as it opened its doors to non-residents. Hong Kong still requires a seven-day quarantine for all international arrivals, deterring both business travellers and tourists.

Hong Kong retail rental market to sink while Singapore’s swims thanks to quarantine-free tourist arrivals, end of Covid-19 restrictions

Analysts predict rents for retail properties in Singapore will rise by 1 to 2 per cent this year, while Hong Kong will see a decline of between 5 and 15 per cent The Hong Kong market will not fully recover until the return of tourists, who account for up to 40 per cent of retail sales historically

Analysts predict rents for retail properties in Singapore will rise by 1 to 2 per cent this year, while Hong Kong will see a decline of between 5 and 15 per cent

The Hong Kong market will not fully recover until the return of tourists, who account for up to 40 per cent of retail sales historically