Hong Kong Industrial

Both investors and end users were active in pursuing industrial properties, but the lack of available stock has driven volumes down. Tight availability saw limited leasing activity in the warehouse market, but the gradual release of some high quality space may induce market movement in 2015.

January 2015

 
  • Purchasers turned their attention to en bloc premises, with a few big ticket sales completed over the quarter – three were over HK$1 billion, bought by both investors, and end users.
  • End users were also active in pursuing their permanent places of businesses, many of them looking to stabilise long-term occupation costs.
  • The warehouse leasing market slowed in Q4, mainly due to a lack of available stock, with many tenants opting to renew.
  • E-commerce tenants were active, expanding their businesses and taking up more space in high grade warehouses, making up for dwindling demand from traditional logistics operators.
  • The short-term outlook for the warehouse sector remains positive, in particular in the sales segment, while the leasing sector may face a short halt due to an increase in availability in the short-run.
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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