Industrial leasing activity steadies in April amidst strong trade flows

Imports and exports rose 10.7% and 8.7% respectively in March.

Industrial leasing activity remained undeterred in April amidst strong trade flows led by robust demand from China.

Imports and exports grew 10.7% and 8.7% respectively in March buoying sales transactions in the sector. The trend remained geared towards renewals, amalgamation and redevelopment opportunities as Forewide Co (Logistics) and Seafrigo Hong Kong Ltd leasing 90.600 sq ft and 25,000 sq ft respectively at Kwai Chung’s ATL Logistics Centre, according to real estate consultant JLL.

Also read: Mega industrial transactions hit $8.02b in Q4

Local investor Lam Sze Fung also acquired a development site in Kwun Tong for $1.63b or $6,180 per sq ft, with the intention of redeveloping it for commercial use. Empire Group also unified the ownership of Tin Fung Industrial mansion in Wong Chuk Hang by acquiring the last remaining unit for $75m to redevelop the building for industrial purposes.

“Overall the market benefits from the upbeat trading activities and it is evident in the proliferation of third party logistics companies such as SF Express and DHL. But its outlook is clouded by a possible China-US trade war, in particular due to the fact that a considerable amount of Chinese exports go to the US through Hong Kong," said Samuel Lai, senior director, advisory & transaction services – industrial of CBRE Hong Kong in an earlier report.