Industrial market sales decline by 79% yoy

But there were also large transactions.

According to Savills Research, Hong Kong’s industrial market sentiment remained subdued, with 15 major transactions (over HK$30 million) recorded in Q1/2014, similar to last quarter and a marked 79% decline when compared with a year ago.  

Industrial prices remained flat over the quarter as a result.  

Here’s more from Savills:  

“The sales market remained quiet as price growth flattened, while the leasing market remained buoyant, with medium to large logistics operators, usually serving single retailers, still eager to expand,” said Savills Research’s Asia Pacific senior director Simon Smith.  

Despite the thin volumes, five of the major transactions were above HK$100 million, with one significant deal completed, namely Billion Development’s acquisition of the en-bloc property in Kiu Tau Wah for HK$405 million.

It is believed that the new owner will remain an investor for now, but may seek to redevelop the site into modern logisti cs facilities in the medium term.