Industrial property transactions slow in March

Much of the leasing activity focused on relocations.

Industrial leasing activity in March broadly centred on relocations as the influence of trade tensions between the US and China continued to weigh on Hong Kong’s external trade performance with the total value of imports and exports edging down 0.1% and 1.2% YoY, respectively in March, a report by JLL revealed.

Also read: Trade war could cut 1% of Hong Kong's GDP

The report noted that cargo and freight company QuarterMaster (QM) Logistics relocated to a 109,900-sqft space at YKK Building Phase 3 in Tuen Mun, whilst SIIX Hong Kong moved to a 32,900-sqft unit also at YKK Building Phase 3 from a building in Yuen Long.

“No notable en-bloc transactions were recorded during the month,” Denis Ma, head of research at JLL Hong Kong, highlighted, adding that all units have been sold to Vignature, a high-quality industrial development in Wong Chuk Hang, including some multiple-unit purchases. “For instance, Wise Miles purchased six units for $140m, at a unit price of $16,400 psf.”

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JLL also highlighted how the government has released a practice note regarding industrial buildings being converted into transitional housing. Under this, eligible industrial buildings are allowed to be converted for residential purposes for no more than five years under the operation of a non-profit organisation or social enterprise, provided that town planning regulations are complied with.