Hong Kong logistics rents rise 3.3% in H1 2024

The prime net rent was $15.5m per sq. ft.

Hong Kong's rental growth for the logistics sector climbed 3.3% year-on-year (YoY) in the first six months of 2024 (H1 2024), amidst a "tepid" market.

Economic activity remained lacklustre with only a few large transactions occurring during the first half of the year, according to Knight Frank Research.

The prime net rent was $15.5m per sq. ft. whilst its vacancy increased to 7.4%.  

Despite tightening availability, rents fell from 6 months ago due to supply pressures incoming from pipelines. 

Overall rent for Asia Pacific's logistics spaces remained on an upward trend, growing by an average of 2.4% YoY.

However, this was a deceleration from the 6.2% recorded in 2023, as a slowdown in business activity on the Chinese mainland led to a 13.5% plunge in rentals in Beijing and Shanghai.

Singapore, Vietnam, and Manila took the top three spots in rental growth for H1 2024, respectively.