Although rents for high-end logistics centres in Shenzhen remained flat last year, the market in Hong Kong has come under pressure last quarter
Savills reported that the prices of industrial buildings in Hong Kong fell slightly by 0.4% in the previous quarter, while warehouse prices fell by 3.1% as sellers made greater concessions to facilitate transactions.
The bank believes that the deterioration of the business environment of logistics operators has begun to affect the modern warehouse market, and the related rent fell by 5.4% last quarter
Savills reported that investor interest in redevelopment is still the focus of the industrial building investment market, and users are returning to the market to find cheap properties, and the transaction volume may remain at current levels in the next quarter or two; however, The surrounding environment and the prospects of the local market are still bleak. The bank remains cautious about the short-term prospects of industrial buildings. It is expected that its prices may be reduced by 3% to 5% this year.
Expect rents to fall another 5% this year
In addition, the bank predicts that given that the owner may maintain a flexible stance when negotiating renewals, warehouse rents are expected to fall further by 5% this year; if uncertainties at home and abroad disappear, there will be a real rebound from 2021.