Hong Kong’s industrial property segment seeing pick up amid rising demand for data centres, JLL says
- Hong Kong a ‘prime destination for institutional investors and data centre operators, thanks to its strong data processing demand, highly skilled workforce, natural disaster-free environment and stable power supply’: JLL executive
- Sydney-listed industrial property firm Goodman Group kicks off conversion of Tsuen Wan building into data centre
The American software giant has committed to a long-term lease for a portion of HK2, a project being developed by Shanghai-based data centre services provider GDS in Kwai Chung that is expected to come on stream in 2025, JLL said. Microsoft did not reply to a request for comment.
“Data centres require scalable and reliable infrastructure and networks. However, the traditional challenge is the scarcity of new supply and buildings suitable for conversion into high-capacity data centres in the city.
Industrial property can be considered a rare bright spot for Hong Kong’s overall property market. While the city’s average office rents fell by about 6 per cent last year as vacancies lingered in double digits, settling at 12.8 per cent in December, mass residential capital values fell by 2.5 per cent month on month in December for an eighth consecutive monthly decline, bringing the full-year price decline to 5.5 per cent, according to JLL.