Hong Kong industrial rents to decline by up to 10% this year

Vacancy rates are projected to sustain an upward trajectory.

In a report, JLL noted that industrial leasing demand in Hong Kong is expected to remain subdued in the near-term with mild contraction expected in trade volumes, normalising from the previous surge.

“Rents are projected to decline by 5 to 10% in 2025,” the report said.

Here’s more from JLL:

SF Supply Chain newly took up 100,000 sq ft in Cainiao Smart Gateway in Chek Lap Kok.
Top Concept Logistics Ltd relocated from a Lau Fau Shan tin-shed to Hutchison Logistics Centre in Kwai Chung, securing approximately 60,000 sq ft.

High vacancy rate of prime warehouses persists

Vacancy rate rose to 9.3% in Q3 2025, up from 9.1% in Q2 2025.

The government recalibrated supply by withdrawing tenders for the Hung Shui Kiu and Yuen Long South logistics sites. The Yuen Long Lot went to the Hong Kong Science and Technology Parks Corporation; Hung Shui Kiu joined the study led by the Development Bureau this year.

The majority of industrial transactions fall below the HKD 20 million price range

A notable transaction in the quarter was the en bloc acquisition of the industrial building at 4-6 Tsing Tim Street in Tsing Yi for a reported consideration of HKD 750.0 million (HKD 3,019 per sq ft).

The buyer was reported to be Uni-China Group, which will use the premises for its own grocery business.