Major Industrial Volume Muted Over High Cost of Funds

• The long-awaited border reopening propelled a strong recovery of logistics demand in Q1/2023, with air cargo throughputs turning around by 6.6% in February after 13 straight months of decline
• The vacancy rates of overall and modern warehouse rose to 2.9% and 2.8% respectively due to the launch of new supply, but remain at healthy levels
• Overall and modern warehouse rentals recorded gains of 0.5% and 0.6% respectively quarter-on-quarter thanks to better prospects of the logistics industry 
• No major industrial transactions over HK$100 million were recorded over the quarter but strata-title sales grew by 27% from Q4/2022, as rate hikes weighed on investor sentiment