Industry-sector rents get boost

PUBLISHED : Wednesday, 22 November, 2000, 12:00am
UPDATED : Wednesday, 22 November, 2000, 12:00am

Rent levels for Hong Kong industrial properties and godowns continued to rise in the third quarter, bolstered by trade growth, according to an FPDSavills survey.

Industrial property rents rose 0.9 per cent in the quarter, while rents for industrial-office buildings were up 5.2 per cent. In the godown sector, rents rose 3.1 per cent.

The property consultant said the industrial-office leasing market remained active, particularly in Cheung Sha Wan and Kwun Tong, with demand mainly coming from tenants relocating from old industrial areas.

The market for good-quality warehouse space remained strong, particularly in Kwai Chung and Tsuen Wan. Prime warehouse properties enjoyed low vacancies in September.

Little new godown supply is expected in the next two years and rents were forecast to rise in the sector, FPDSavills said.

However, prices for industrial properties fell 0.5 per cent in the period.

It said there was only one large transaction in the flat factory-sales market in September, while the number of small lump-sum transactions reflected some end-user activity.

Sales prices of industrial-office buildings rose 1.5 per cent, while the godown market rose 1.7 per cent in the three months to September.

FPDSavills said industrial and godown rents were supported by the year-on-year import growth of 23.4 per cent in the quarter. Total exports also were healthy, rising 18.2 per cent.

Container throughput in the first five months of the year was up 16.2 per cent year on year.