Hong Kong Industrial

Hit by a lack of billion-dollar deals, investment sales slowed but redevelopment potential was again the catalyst behind most en-bloc transactions. Logistics demand was dragged down by the slowing retail market with some vacant space being gradually released to the market.

May 2015

  • En-bloc deals were still evident, though on a much smaller scale than last quarter, with redevelopment potential the key theme behind such purchases.
  • Slowing retail sales has had a knock-on effect on retail-related logistics demand.
  • Some multinationals switched to cost-saving mode and were keen on one-storey sheds in the New Territories amid escalating rents.
  • With warehouse vacancy gradually rising, we expect to see more space being made available to the market in the near future.
  • Investment volume and value are likely to dwindle over the next few months due to a lack of quality stock as well as increasing difficulty to secure financing.

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573


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