Retail sales in Hong Kong have continued to strengthen with a 12.8 percent year-on-year gain in March, partly driven by a buying spree of electric vehicles before tax concessions expire at the end of the month.

Figures released by the Census and Statistics Department on Wednesday showed that the value of the city's retail sales reached HK$33.9 billion.

While that was lower than the approximately HK$35 billion of sales seen in February, when the growth rate hit 19.3 percent, the growth pace was still the fastest in 28 months, that is since November 2023.

In terms of volume, retail sales rose by 9.8 percent year on year, after netting out the price-change effects, maintaining the same growth pace seen in the first two months of the year.

In commenting on the figures, a government spokesman said sales "continued to strengthen" in March, with resilient growth seen across various types of products.

"Among the various types, sales of motor vehicles showed particularly strong growth, as purchases spiked before the expiry of the first registration tax concessions for electric private cars at end-March," he noted.

"Looking ahead, the near-term outlook for retail sales is broadly positive, underpinned by recovering local demand, sustained growth in inbound tourism, and a favourable macro-financial environment," he said, adding that the government would continue to monitor for downside risks arising from the latest geopolitical tensions.

Specifically, sales of motor vehicles and parts rocketed 80.8 percent year on year, while that of electrical goods and other unclassified durable products rose by around 30 percent in value terms.

Sales of jewellery, watches and clocks, as well as valuable gifts were also strong, up by 27.2 percent.

However, sales of fuels declined by over 14 percent while footwear, allied products and other clothing accessories were down by 10 percent in value terms.

For the first quarter as a whole, sales rose by 12.1 percent year on year in terms of value and 9.8 percent in terms of volume.

Online sales also picked up, spiking 30 percent.


Edited by Aaron Tam