Cargo throughput is set to rise to 9 million tonnes by 2030.
Despite losing its mantle as the world’s busiest container port, Hong Kong is still considered to have the world’s busiest airport for cargo movements, beating out the likes of Memphis, which is home to the largest FedEx Express hub in the world, according to a report by JLL.
Hong Kong’s position at the top will reportedly strengthen with the addition of a third runway in 2024, which will help increase cargo throughput to 9 million tonnes by 2030, up from the 5 million tonnes handled in 2018.
Additionally, the Chinese government’s focus on promoting innovation and technology in the Greater Bay Area (GBA) is expected to support the trend of high-value technology goods being exported through Hong Kong.
Data show that exports of apparel and textiles from Hong Kong have steadily declined over the past 25 years, whilst the flow of electrical and telecommunications goods out of the city have risen significantly.
Coupled with the city’s plans to increase cargo handling capacity at the Hong Kong International Airport, JLL expects to see greater demand for high-end warehouses in the city, especially in areas where most air freight specialists are located.
As the GBA further develops, the rise in commercial and economic activity is also likely to fuel the growth of ultra-high networth individuals (UHNWIs) in southern China bringing further demand for luxury properties.
“The increased connectivity will drive the flow of goods across the region and to Hong Kong, which will translate into higher demand for high-end warehouses in the city,” Denis Ma, JLL’s head of research for Hong Kong, said in the report.
Do you know more about this story? Contact us anonymously through this link.