Hong Kong logistics rents dip 1.7% in Q1 2025

Leasing is expected to remain driven by renewals in the next few quarters.

Hong Kong’s logistics sector continues to face subdued demand due to ongoing uncertainty over potential trade disputes, resulting in a 1.7% quarter-on-quarter and 5.7% year-on-year decline in rents during Q1 2025, according to Colliers’ latest Q1 2025 Quarterly Market Report.

Whilst third-party logistics (3PL) providers were more active in the leasing market, most transactions in the first quarter involved renewals and relocations rather than new expansions.

“Whilst the uncertainties regarding potential trade disputes is ongoing, we expect leasing to remain primarily driven by renewals in coming quarters. Landlords are increasingly adopting more flexible strategies including rent reductions and offering incentives to attract or retain tenants, further exerting pressure on rental rates which will see a 4% drop YoY in 2025,” Fiona Ngan, Head of Occupier Services at Colliers Hong Kong, said in a note.