Hong Kong Logistics Market Faced Mixed Results in Q4

• Lease renewals and tenant movements were the primary activities in the market, with minimal relocations and expansions.
• CaiNiao Smart Gateway obtained official approval, increasing overall and modern warehouse vacancy rates to 7.3% and 10.4% respectively.
• The rise in vacancy rates, coupled with landlords' increased flexibility in the face of larger tenants' lease expiries, resulted in an overall decline of approximately 1% in rents for both overall and modern warehouses.
• Sales market experienced unexpected activity with two significant en-bloc deals.
• Demand for conversion properties selective, with self-storage facilities more appealing compared to cold storage and data centres.