Hong Kong Industrial Sales and Leasing

Housing Investment Consultancy
Industrial Sales and Leasing Briefing

November 2017

The sale of Maxwell Industrial Building for HK$1.39 billion was a high profile transaction, reflecting confidence from local investors in the long-term redevelopment prospects for industrial premises in Kowloon East.

The sales market saw the high profile sale of Maxwell Industrial Building in Kwun Tong for HK$1.39 billion.

Investment sentiment elsewhere was more muted with a lack of available en-bloc sales stock, as well as flattening rental returns.

The warehouse leasing market saw more movement in Q3/2017, mainly upgrade demand from medium-sized 3PLs.

Elsewhere in the more traditional warehouses, vacancy crept up with smaller landlords unable or unwilling to cut rents to retain tenants facing lease expiries.

We expect the bottoming out of the trading sector as well as the recovering retail segment to provide some support to logistics demand.

We expect warehouse prices to remain more or less unchanged over the remainder of the year while industrial prices may increase further as a result of redevelopment interest.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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