The shortage of industrial properties is set to become acute as more industrialists, eager to take advantage of the third phase of the Closer Economic Partnership Arrangement (Cepa) next year, acquire units to set up satellite factories in Hong Kong, according to a report by CB Richard Ellis (CBRE).
The report, on the performance of the industrial property market in the third quarter, attributed the shortage partly to redevelopment of premises for alternative use, and a lack of new supply.
'Demand for factories is forecast to pick up as some industrialists, particularly those in the garment industry, are acquiring units to establish satellite factories to harness beneficial trade arrangements in the SAR,' the report said.
The third quarter of the year saw the rental and capital value of factory properties going up by 5.2 per cent and 9 per cent respectively, CBRE said.
The report also highlighted the fact that the supply of warehouse facilities was fast running out thanks to the increase in Hong Kong's external trade, especially in prime locations such as Kwai Chung and Tsuen Wan.
The vacancy level averaged 2.3 per cent in the third quarter. And in the near future, there would not be any new supply, said the report citing the Rating and Valuation Department.
