Hong Kong's retail sales value surged 13% year-over-year in March, accelerating from February and beating forecasts to provide a boon for the city's retail landlords.
"Hong Kong's retail sales in March beat," UBS said in a research report, viewing the results as a positive for discretionary-focused landlords such as WHARF REIC (01997.HK) and HYSAN DEV (00014.HK).
The 13% growth in total retail sales value accelerated from a 12% year-over-year increase in February and topped consensus estimates of a high-single-digit expansion. Even after excluding volatile automobile and electronics sales, the value of retail sales still climbed 8% from the prior year.
The stronger-than-expected data suggests robust local consumer demand, but the outlook is mixed. UBS noted that persistently high oil prices remain a key downside risk that could weaken per capita spending from mainland visitors. Conversely, a reduction in outbound travel by Hong Kong residents may bolster domestic consumption, with community mall operators like LINK REIT (00823.HK) positioned as a relative beneficiary.
This article is for informational purposes only and does not constitute investment advice.
