HK industrial rents world's 13th most expensive
Hong Kong has risen one place to become the world's 13th most expensive city for industrial tenants as demand for space has surged on continued rising exports and increasing container traffic, a survey by property consultants Cushman & Wakefield shows.
Industrial rents have risen 16 per cent to US$11.349 per square foot a year, thanks to booming trade flows to the mainland and due to the shortage of supply and increasing demand, according to the survey which looks at 85 of the world's top industrial locations.
'In 2006 in Hong Kong, we saw the Macquarie Goodman Hong Kong Wholesale Funds established and the growth of the Mapletree Logistics Trust, highlighting institutional interest in the sector,' said Andy Cheung, associate director of Cushman & Wakefield's Hong Kong Industrial Services.
In April last year, Australia-based Macquarie Goodman launched the A$850 million (HK$5.29 billion) Macquarie Goodman Hong Kong Wholesale Fund. The fund invests in warehouse properties in Hong Kong.
Mr Cheung expected Hong Kong's industrial market to remain strong this year due to rising exports, increasing container traffic and strong domestic economic growth.
In the mainland, Beijing remains the most expensive city for industrial tenants, with rents rising 9 per cent last year to US$6.89 per square foot a year. However, it has dropped two places to 39th in world rankings, the survey showed.
'Beijing is the prime location for the hi-tech industry in the mainland. We expect it to become increasingly popular with manufacturing and logistics industries in the near future,' said Andy Zhang, the general manager of Cushman & Wakefield's Beijing office.
Meanwhile, the area around London's Heathrow airport retains its position as the world's most expensive industrial location with rent for prime industrial space as high as US$30.84 per square foot a year. Rishon Le-Zion in Israel is in second place and Tokyo in third.
