Staff reporter

Hysan Development (0014) believes signs of a recovery have emerged in Hong Kong's sluggish retail sector though the office leasing market will continue to face pressure this year, with a narrowed decline in renewal rents.

This prediction came as the biggest landlord in Causeway Bay swung to a net profit of HK$35 million last year from a net loss of HK$872 million, thanks to higher rental income.

Hysan chairman Irene Lee Yun-lien noted the overall downward trend of rate cuts remains unchanged despite a slowdown in pace and frequency, adding the recent improvement in the city's stock market will further boost confidence among Hongkongers.