APAC retail leasing sees renewed growth in Q4 2024

In Japan, the retail market thrives on tourism-fueled entertainment demand.

Retail leasing activity in Hong Kong picked up pace in Q4 2024, bolstered by strong demand in the food and beverage (F&B) sector, CBRE reported.

Although leasing activity has softened slightly compared to the robust levels seen in 2023, retailers remain keen on opening new stores as landlords adopt more flexible rent strategies to attract tenants.

In Japan, the retail market in Tokyo and other regional cities continues to experience strong demand coupled with limited availability.

Luxury retailers maintain stable expansion plans, whilst Japanese entertainment retailers such as amusement arcades and karaoke bars are becoming increasingly active in prime areas.

This trend is driven by growing interest from overseas tourists, further revitalising the retail sector, the report noted,

Bangkok's retail market is also benefitting from a surge in visitor arrivals, which is driving international brands, particularly in the F&B and fashion sectors, to expand in the city’s downtown areas.

Shopping malls are also tapping into the health and wellness trend, with developers allocating more space to clinics and leading hospitals offering minor surgeries and treatments. This diversification is enhancing the appeal of retail destinations to both locals and tourists.