Industrial building activation demand continues, Jones Lang LaSalle is expected to increase price by 5%
Jones Lang LaSalle’s “Hong Kong Property Market Watch" published yesterday pointed out that although the Sino-US trade war has affected the performance of Hong Kong’s foreign trade, the property market has turned weak, but it believes that the market demand for industrial buildings will continue, and the market will remain stable. This year’s construction price has a 5% increase.
Ma Anping, head of the research department of Jones Lang LaSalle, said that despite the hidden dangers of the external economy, the government’s plan to restart the industrial building is good for market development, and the industrial building project continues to be sought after. In the first half of this year, the industrial market has recorded a number of large transactions, and individual transaction prices have exceeded market expectations. He expects that high-rise industrial buildings suitable for revitalization will continue to attract investors, especially in areas with large residential supply and changes. It is expected that the cost of industrial buildings will increase by 5% this year.
The report also mentioned that the overall Grade A office market rent rose by 0.3% in May this year, driven by the growth of the market in Tsim Sha Tsui and Hong Kong Island. The increase in rents in Quarry Bay was the largest in Hong Kong Island, up 1.4% month-on-month. At the same time, in order to save rental costs, tenants are mainly concentrated in non-core business districts. As of the end of May this year, the vacancy rate of Grade A office buildings in Central was 2.3%, up one percentage point month-on-month.
Bao Yali, head of the commercial department of Jones Lang LaSalle, said that although the leasing of Central’s leasing has slowed down and the vacancy rate has risen, the expansion demand of a small number of financial and legal industry institutions is still active. He believes that the downward pressure on Grade A office rents in Central is not very strong.