• Hong Kong aggregate trade fell by 3.7% y-o-y in April and May combined, the seventh consecutive monthly decline.
  • Leasing momentum weakened as U.S.-China trade conflict prompted occupiers to adopt a wait-and-see approach. However, redevelopment projects continued to generate forced-relocation demand, helping to push down the vacancy rate to 1.7%., the tightest since Q3 2014.
  • Although the U.S.-China trade conflict will drag on rents in the coming months, the low vacancy environment will continue to support mild rental growth in H2 2019.