Industrial

  • Aggregate trade value fell by 8.1% y-o-y in July and August combined. Transshipments between the U.S. and China through Hong Kong weakened by 8.4% y-o-y over the same period, marking three consecutive quarterly declines. The contraction in airfreight accelerated to 9.8% y-o-y in July and August combined, the sharpest fall since Q2 2009.
  • Leasing momentum continued to slow in Q3 2019 as occupiers retained their wait-and-see approach. Occupiers with less exposure to domestic and international disputes, such as data centres and beverage logistics companies. continued to support leasing activity.
  • Warehouse vacancy edged down slightly by 0.1% points to 1.6%, marking the fourth consecutive quarter that vacancy has been below 2.5%.
  • Rents for ramp-access buildings rose by 1.2% q-o-q while those for cargo-lift access buildings increased 0.1% q-o-q. Overall warehouse rents grew by 0.8% q-o-q. As immediate vacancy will remain limited, warehouse rents are therefore expected to be stable for the remainder of 2019.