Hong Kong Industrial Sales and Leasing

Housing Investment Consultancy
Industrial Sales and Leasing

April 2019

The lack of available space has forced many large scale 3PLs and end users to renew their existing leases, with landlords becoming more bullish in rental negotiations.

The sales market saw renewed interest in en-bloc / majority share deals with reviving sentiment, and industrial prices rebounded across all three subsectors.

The warehouse leasing market recovered swiftly after a brief correction towards the end of last year, mainly due to a possible US / China trade resolution, with shrinking vacancies inducing many landlords to raise rents in Q1/2019.

With vacancy remaining tight (1.8% overall and 0.7% for modern warehouses), many tenants chose to renew their leases, with sizable renewals for MNCs such as Carlsberg and DHL recorded in ATL and Goodman Interlink respectively.

The reintroduction of the revitalization policy may have revived investment sentiment, but additional restrictive measures may hinder actual conversion interest.

Investment sentiment looks set to improve over the next few months with the interest rate issue all but settled and with redevelopment becoming a market focus again.

The prospects of the logistics sector will still very much depend on the outcome of the US / China trade negotiations, while e-commerce and limited modern warehouse supply should support further rental growth.


Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573


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