The Times Are They A-Changin’?

2024 was a landmark year for PCB, with the launch of our Manchester office in June taking centre stage. Now that our Team in Manchester is firmly established, it feels like the perfect moment to shift the spotlight back to our Global and Asia HQs in London and Hong Kong for this forward-looking 2025 update.

For Everything, There is a Season

My recent Asia tour in late Autumn as always provided invaluable face time with our Hong Kong Team (despite the usual whirlwind schedules!) and offered a fresh perspective on the outlook for these two prized and dynamic cities.

It’s no secret that property markets in London and Hong Kong have faced notable challenges in recent times. For Hong Kong especially this is an understatement. Higher interest rates, rising living costs, subdued financial markets and political factors have all contributed to tough conditions.

Both centres have historically shown incredible resilience, often defying expectations. For decades they have consistently delivered above-average results. For example, Hong Kong’s pre-pandemic exhibition sector boasted an impressive 30–45 events weekly all year round. Truly a city that never sleeps. If we’re all honest with ourselves, the recent lull feels like a much-needed (albeit unwelcome) opportunity to rotate the crop and let the market recover its strength.

Evergreen Shoots

We’ve seen enough false starts over the last few years to know it’s wise to avoid making any overly optimistic predictions… HOWEVER, there are a few reasons for measured positivity as we close out this year and head into 2025.

In Hong Kong, there are glimmers of recovery in the markets. The correlation between stock market performance and consumer and investor sentiment is particularly significant in Hong Kong and improvement in the former tends to lead to spending in all other areas. Despite recent dips, the Hang Seng Index (HSI) closed 2024 with a 17.7% annual gain, ending a four-year losing streak.

In London, a new government brings renewed focus on development, providing a more constructive backdrop for the real estate sector. While all governments have their share of faults (some more than others), the sentiment shift toward pro-development policies is at least the right signal for our industry, and seems to have had a positive impact on developer sentiment. Moreover, London’s enduring reputation as a global safe-haven continues to attract interest, even amidst broader challenges.

The UK’s long-standing demand/supply imbalance, particularly in London, remains a key factor. It’s not a question of if the market will rebound, but when. Both cities feel overdue for an upswing, could 2025 be the year?

Further Afield

One enduring trend is the diversification of buyer origins. While demand is less concentrated geographically, global interest in the UK property remains strong.

Local demand for regional newbuilds is robust, while international markets like Turkey and Dubai—now thankfully downgraded from the high-risk register—continue to deliver. Encouragingly, we’re seeing restored activity from Singapore and Malaysia, both looking set to rebound after their own long hiatuses. Taiwan and Thailand are also gaining traction after showing promise earlier in the year.

PCB’s recent activity reflects this global interest. Over seven weeks, we participated in events across seven countries: the UK, Turkey, Dubai, Kuala Lumpur, Hong Kong, Singapore, and Taiwan. Our Middle Eastern and Asian bias is as always where we see the most potential, and we’re excited to see what 2025 has in store.

Speaking of Middle Eastern biases, watch this space for what takes centre stage at PCB this year…

Green Pastures

When times are tough, it’s important to remember that markets, like seasons, are cyclical. Change is always just around the corner. Sometimes even the strongest markets need time to rest and recover.

As London and Hong Kong edge toward recovery, brighter days feel closer than ever. If these key markets begin to bear fruit alongside the newer pastures we’ve all been developing during the leaner times, we could all find ourselves standing in very green pastures indeed.

Until then, we remain focused on doing what we do best; thriving in interesting times.