Stable Rental Rates Despite the Decreased Logistics Demand

• Positive factors brought by boarder reopening in Q1 faded quickly in Q2, with overall macroeconomic data related to logistics continuing to decline.
• The electric vehicle and fresh food/cold storage industries dominated the leasing market. In Q2, overall and modern warehouse rents rose by 0.6% and 0.5% respectively.
• Due to rising interest rates, commercial mortgage rates could reach 6% to 7%, rendering property investment unattractive. Despite this, there were several transactions exceeding HK$100 million during the quarter.
• Demand for stratified industrial premises continued to grow, with Q2 volume reaching 560 transactions.