Trading activity in Q4 2019 continued to be affected by the volatile global economic environment. Hong Kong’s aggregate trade declined by 7.1% y-o-y in October and November combined, bringing the fall in the year-to-date value to 5.9% y-o-y, the sharpest decline since 2009.
Most occupiers turned more conservative over the quarter and were considering cost-saving initiatives. However, data centres continued to display solid expansionary demand.
Overall warehouse rents grew by 0.4% q-o-q, resulting in full year rental growth of 3.6% y-o-y. Warehouse vacancy edged up slightly by 0.2% points to 2.1%.
The industrial revitalisation scheme and resumption of brownfield sites should ensure warehouse rents stay flat in 2020.