Hong Kong industrial rents to fall 5% in 2026

But Colliers still sees long-term upside for the sector.

Hong Kong's industrial property market remained supported by resilient trade activity linked to global artificial intelligence demand during the second quarter of 2026, although warehouse rents continued to soften, according to Colliers.

The consultancy said lease renewals remained the dominant source of activity, while new leasing transactions were driven by third-party logistics providers and e-commerce operators. Landlords continued offering incentives to maintain occupancy, contributing to a 3.2% quarter-on-quarter decline in warehouse rents.

Despite ongoing rental pressure, Colliers said long-term market fundamentals remain positive.

Fiona Ngan, Head of Occupier Services at Colliers Hong Kong, said industrial rents are expected to decline by around 5% during 2026, but growing AI-related trade flows and Hong Kong's plans to significantly expand its gold storage capacity are creating future demand for specialised logistics facilities, high-security storage and related support services.

According to Colliers, these structural demand drivers are expected to underpin the sector's longer-term growth despite near-term rental weakness.