21 SWIRE PROPERTIES ANNUAL REPORT 2024 Retail Footfall and retail sales in Hong Kong are expected to continue to face challenges due to outbound travel and changing tourist spending habits. However, we are optimistic about the resilience of our shopping malls, thanks to the continued refinement of our trade mix, robust marketing campaigns and innovative loyalty programmes. Our malls have benefitted from clear market positioning, attracting both local and international customers. We are committed to maintaining a vibrant and diverse trade mix and elevating the retail experience to capture the full market potential. The Christmas campaign at Pacific Place attracted record-breaking numbers of visitors, particularly from the Chinese Mainland. We are confident that the Government’s multi-entry visa policy will benefit the market. Footfall in our Chinese Mainland malls has continued to increase, highlighting their appeal as desirable retail landmarks. Retail sales stabilised in Q4 2024, reflecting improved consumer sentiment following the Government’s stimulus measures which were announced in September 2024. In 2025, retail sales growth is expected to pick up in the Chinese Mainland, driven by increased domestic demand and the progressive completion of renovation work in several malls. Inbound and outbound travel activity is expected to increase, together with a shift in spending behaviour compared to pre-pandemic patterns. In the long-term, onshore consumption is expected to dominate the retail market in the Chinese Mainland, with the number of luxury customers continuing to grow, thereby establishing the Chinese Mainland as one of the largest luxury markets globally. Demand for retail space in 2025 is expected to remain selective. Luxury retailers will adopt a prudent approach to expanding in Beijing, Chengdu, and Shanghai, seeking high- potential, experiential locations. In Guangzhou, demand for suitable locations for luxury brands is expected to be sustained while overall demand for sports and leisure brands is increasing. Structural and reconfiguration works are ongoing at Taikoo Li Sanlitun North in Beijing and at HKRI Taikoo Hui in Shanghai as a key part of our asset reinforcement strategy. We are also making good progress with our pipeline of new, mixed-use projects in Sanya, Xi’an, two projects in Shanghai and our two newest projects, the former Cultural Centre adjacent to Taikoo Hui Guangzhou and Taikoo Li Julong Wan Guangzhou, our latest retail project located in Liwan district. We are also introducing our flagship Taikoo Place brand to Beijing, repositioning Greater INDIGO as “Taikoo Place Beijing”, to be rolled out in phases from mid-2026. Residential In Hong Kong, residential sales have increased due to interest rate cuts and relaxed mortgage measures. However, rebuilding confidence and restoring market sentiment will take time. Medium to long-term demand is expected to improve, supported by local buyers and increasing interest from Chinese Mainland buyers. We have a balanced trading pipeline in Hong Kong, and pre-sale plans are underway for our latest project, The Headland Residences, in Chai Wan.