Demand for Hong Kong Logistics Remains Stable
According to global real estate consultant JLL, although the US-China trade war has cast a shadow over Hong Kong’s economy, the industrial property market continues to be a bright spot.
Driven by expansion requirements from logistics companies, demand for industrial property remained largely intact in May with several large transactions being recorded. In the leasing market, Geodis expanded in YKK Building Phase 2 in TuenMun, taking up the entire 19th floor of the building (34,100 sqft). Meanwhile, Laws Property Group has reportedly acquired an industrial building at 822 Lai Chi Kok Road in Cheung Sha Wan from Hang Lung Properties for HKD 1.4 billion (HKD 14,870 per sqft) with plans to revitalize the building into an industrial, retail and commercial property. This latest transactions suggests that the government’s scheme to revitalize older industrial buildings is benefitting the market.