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EXPECTED
Rebound in retail consumption
- Retail sales surpassed 2019 levels in H1 2021
- A K-shaped recovery is occurring, with performance varying across different trades
Gradual recovery in leasing activity
- Demand is being driven by domestic brands
- Flight-to-quality relocation is the main trend
- Neighbourhood retail will continue to outperform, while demand for prime CBD space is expected to rebound
- Full-year rental growth will be led by mainland China
UNEXPECTED
Restrictions weigh on the recovery
- The reintroduction of lockdowns and other restrictions from April negatively impacted the performance of non-essential retail businesses
Weakening rental revival
- CBRE has downgraded its 2021 rental forecast for most markets, with the largest reductions for Australian CBD markets
- Hong Kong SAR has changed from laggard to leader as local retailers resume expansion
