Hong Kong Industrial Sales & Leasing

Both industrial prices and rents fell in Q4/2015 given slowing demand and increasing supply in the sector, while the increase in investment deals was largely a result of end user / conversion demand.

February 2016

  • Investment activity revived in Q4/2015 as end users and investors looked for conversion / redevelopment potential.
  • Warehouse vacancy rates rebounded to 2.1% in Q4/2015 with more space being made available by downsizing and cost-cautious occupiers
  • While industrial godowns and lower quality warehouses may face more downward rental pressure due to shrinking demand, higher quality and modern warehouses may be more immune.
  • The investment market may be further hit by the increasing cost of funds in Hong Kong as well as the imminent end of the ‘nil waiver fee’ policy at the end of March this year.

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573


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