bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Peggy Sito

Among all sectors of Hong Kong's property market, warehouses was the only one that recorded any sort of rental increment in the first quarter of this year.
However, while extremely low vacancies are still supporting the sector, the gradual softening of logistics demand due to slower growth in retail sales might mean more moderate rental growth in the short run, consultants said.
Warehouse rents rose 2.8 per cent in the first quarter, Savills said.
Rental growth was mainly driven by warehouses in peripheral areas, such as Tuen Mun and Yuen Long, where rents were playing catch-up, with virtually no vacancies during the quarter, a recent Savills report said.
CBRE said industrial leasing demand remained solid and was focused on large premises.
It said demand was partly driven by tenants that had been squeezed out from industrial premises under the government's revitalisation scheme.
But it expected rental growth for warehouses to be relatively modest after rising for 19 consecutive quarters.
The vacancy rate for warehouses tightened to 0.6 per cent at the end of the first quarter, the lowest since the first quarter of 2011.
Vacancies remained low despite Hong Kong's lacklustre trade performance, with combined January and February exports declining 0.8 per cent from the same period last year and imports rising 1.4 per cent.
After rising a combined 6.7 per cent in the first two months of the year, retail sales in Hong Kong fell 1.3 per cent year on year in March.
In the first quarter, Savills said, the largest warehouse leasing deal was completed in Tuen Mun, where a German logistics firm leased UTI Logistics Centre for about HK$1.95 million.
The facility has a gross floor area of about 168,000 sq ft, and the gross rent is about HK$11.60 per square foot, a new high for a logistics property in the area.


Warehouses sole bright spot for rental growth, but not for long

The vacancy rate for warehouses in Hong Kong tightened to 0.6 per cent at the end of the first quarter. Photo: Felix Wong

Hong Kong jewellers keen on Qianhai site for precious metal warehouse

Haywood Cheung is pushing for Qianhai warehouse. Photo: Edmond So

Warehouse rents in Hong Kong rise amid tight supply and strong demand

Darren Benson

Hong Kong office shortage spurs makeovers of disused factories, warehouses

Average prime office rents in Hong Kong rose 54 per cent between mid-2009 to June 2013, according to government figures. Photo: EPA

Property

Hong Kong & China

Among all sectors of Hong Kong's property market, warehouses was the only one that recorded any sort of rental increment in the first quarter of this year.
