Hong Kong to add 6.7m sq ft of modern logistics space by 2028

Kwai Tsing leads Hong Kong's logistics upgrade push.

Hong Kong’s logistics sector is undergoing a major transformation as demand for modern, high-spec warehouses surges, according to CBRE.

CBRE highlights that growth in cross-boundary e-commerce and high-value goods such as electronics, pharmaceuticals, and art is driving demand for advanced logistics facilities. Occupiers are prioritising warehouses with higher ceilings, automation, energy-efficient systems, and enhanced amenities to improve operational efficiency.

Much of Hong Kong’s existing warehouse stock is aging, with over half built more than 30 years ago, creating a significant quality gap. CBRE estimates that upgrading demand from operators in older buildings could reach up to 52 million sq. ft. over the long term.

Kwai Tsing has emerged as the city’s most advanced logistics cluster, accounting for 60% of Hong Kong’s warehouse pipeline between 2010 and 2025. The district continues to attract high-value logistics operators and e-commerce firms, while upcoming developments totaling 6.7 million sq. ft. by 2028 will further strengthen its dominance.

Looking ahead, CBRE identifies the Northern Metropolis as a major long-term growth area, with up to 74 million sq. ft. of planned logistics space. The area is expected to support relocation of older facilities and enable modern, technology-enabled operations.

CBRE also predicts a shift toward 3D rental pricing to better reflect storage capacity in high-ceiling, automated warehouses, making such facilities more cost-efficient despite higher per-square-foot rents.

The firm recommends a flexible government approach, including phased development, relaxed land-use rules, and support for diverse modern facilities, to reinforce Hong Kong’s position as a sustainable international smart logistics hub.