The outbreak of the novel coronavirus (COVID-19) that began in December 2019 poses downside risks to China, as well as Hong Kong SAR (Special Administrative Region of the People’s Republic of China) — which faced a tough year in 2019. Market players in Hong Kong generally expect the history of SARS in 2003 to be repeated. If capital values initially decline due to coronavirus, this may well create a chance for investors to enter the market. We recommend landlords focus on office occupier sectors likely to remain active despite the virus, while offering retailers short term rental relief. Occupiers desiring Central offices should look now given recent increases in the vacancy rate and falling rents. Meanwhile, this is a good chance for growth sectors to expand at lower rental costs.
For detailed insights into our research on the impact of COVID-19 on the Hong Kong market, please download the full whitepaper, Impact of Coronavirus on Hong Kong Property Markets.
About the Authors:
Rosanna Tang is head of research for Colliers’ Hong Kong and Southern China markets. Driving different research papers and client-orientated initiatives, Rosanna has a deep understanding of all property sectors, research products, and client requirements. Rosanna is also one of the spokespersons in the company, and she frequently speaks in different industry events and media interviews.
Zac Tang is research manager for Colliers’ Hong Kong office and specializes in the Hong Kong office and residential markets. With five years of experience in Colliers research department, Zac drives thought leadership for Colliers that provides objective and actionable research insights for property occupiers and investors.
Hebe Lau is part of the research team for Colliers’ Hong Kong market and specializes in the analysis of Shanghai and surrounding Tier II cities’ retail market.