HK high up in retailer expansion ambitions

Hong Kong ranks second in the most preferred cross-border retail expansion destinations in Asia Pacific with tier-one cities in China ranking first, says CBRE.

The city is one of the top three preferred destinations for cross-border expansion in Asia Pacific as retailers are seeing opportunities driven by a return of tourists, government stimulus as well as strong domestic consumption, according to CBRE's 2023 Asia Pacific Retail Flash Survey.

Tier-one cities in mainland China have topped the ranking as the most preferred destinations, followed by Hong Kong and Singapore, both taking second place.

Asia Pacific retailers have an increasingly optimistic outlook as the sentiment turns positive with 72 percent of the retailers expecting their sales to rise from 2022 and 71 percent intending to open new stores despite rising costs.

Retailers polled in the survey also believe that some online sales will shift back to brick-and-mortar retail as the world returns to normal.

The survey has revealed that retailers prefer quality retail spaces in shopping malls and along prime high streets.

"China and Hong Kong are forecast to enjoy the strongest sales rebound after lifting pandemic-related measures. Retailers are positive yet believe the rebound is in sight but will happen gradually over a longer period," said Lawrence Wan, senior director, head of advisory and transaction services of retail, CBRE Hong Kong.