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Hong Kong Industrial Sales & Leasing June 2025

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Contacts & Related Research

 

Trade Shows Resilience, Yet Industrial Property Prices Face Persistent Downward Pressure

  • Trade Recovery: Q1 saw imports and exports grow 5.7% and 6.6% YoY respectively, with air cargo volume up 3.4% and container throughput rebounding 2.1%.
  • Logistics Sector Caution: 3PLs now demand verified Bills of Lading and Letters of Credit for warehouse expansion, freezing most expansion plans, seeing minimal significant relocation deals in the sector.
  • Vacancy Rates Climb: Overall and modern warehouse vacancies rose to 7.6% and 9.2%, triggering approximately 1% rental corrections.
  • Big-Ticket Transactions: Notable deals included Mapletree's HK$3.68 billion acquisition of the TYTL 202 logistics site (Tsing Yi) and the HK$253.6 million en-bloc sale of Capella HTR (Kwun Tong).
  • Strata Sales Revival: Transaction volume jumped 23% QoQ to 702 deals, with 71% below HK$10 million - reflecting improved investor sentiment driven by stock market gains.
  • LME Warehouse Expansion: LME authorized seven licensed warehouse facilities (across West Kowloon/Tsing Yi/Yuen Long), with operations commencing Q3 2025 to boost precious metals trading.

The US-China trade conflict has temporarily eased with reduced tariffs, but supply chain disruptions persist. Hong Kong's trade sector demonstrated resilience in Q1 2025, with rising imports and exports. However, the logistics industry is adopting cautious strategies, affecting expansion plans and increasing vacancy rates amid fluctuating investment sentiment.

Jack Tong, Director of Savills Research & Consultancy
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