Hong Kong’s logistics rents dip by 3.2% YoY in 2024

It declined by 1.9% in the second half of the year.

Hong Kong logistics rents declined by 3.2% year-on-year (YoY) in 2024 and 1.9% in the second half of the year (H2 2024), according to a Knight Frank report.

Hong Kong is also amongst the markets projected to see a decline in the next 12 months, along with Beijing, and Shanghai.

On a regional basis, whilst 14 of 17 tracked cities recorded stable rents YoY in H2 2024, overall rent growth in Asia-Pacific slowed to just 0.2% in 2024, down from 7% in 2023 and 2% in the first half of 2024.

Markets in the Chinese mainland faced headwinds, with Beijing and Shanghai experiencing 14% to 15% YoY rent plunges due to a substantial development pipeline.

In contrast, Melbourne emerged at the top with a 6.7% growth, driven by land scarcity. Southeast Asian markets showed resilience, with Greater Kuala Lumpur leading half-yearly rental growth of 5% as the completion of higher-quality industrial properties lifted rents.

Looking ahead, Knight Frank said the potential for increased tariffs under a second Trump administration could accelerate the realignment of global supply chains, both within Asia-Pacific and between regions.

“As the world braces for Trump 2.0, occupiers will have to tread a strategic tightrope, focusing on cost management while selectively evaluating their logistics footprint,” Tim Armstrong​, global head of occupier strategy and solutions at Knight Frank said.