Some segments of Hong Kong's commercial property sector, specifically the grade-A office and retail markets, are seeing a recovery, S&P Global Ratings said in a recent release.
A boost in the financial sector has led to steady rents for premium offices, while discretionary retail has seen a rebound due to the inflow of luxury shoppers from mainland China, S&P said.
Key metrics in these segments, such as net take-up and retail sales growth, have seen improvements, the rating agency said.
Landlords with exposure to the segments should see credit support even with a decline, albeit at a slower pace, in commercial rents, S&P said.
The highly specific recovery is in contrast with indications of general office oversupply and structural retail constraints, credit analyst Edward Chan said.
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