Property investors urged to focus on cold storage in the next 3 years | Realestate Asia
,Hong Kong

Property investors urged to focus on cold storage in the next 3 years

Hong Kong’s strong export rebound and rise in food consumption would increase this asset’s value.

The industrial sector in Hong Kong outperformed other key property sectors and continued to recover, with capital and rental appreciation recorded in Q2, according to Colliers. Warehouse rents increased 1.1% QOQ, contributing to a +3.5% rental rebound in H1 2021 after a -5.3% YOY drop in 2020.

John Davies, Head of Kowloon Office and Industrial Services, stated: “The industrial sector has seen positive performance so far this year, and we forecast YOY warehouse rents and prices to adjust by +5.0% and +6.8% in 2021, respectively.”

On the investment front, strata-titled industrial transactions of less than HK$100 million grew 280% QOQ from a low base, reaching HK$4.4 billion (US$0.6 billion).

“Given the strong export rebound (+24% YOY) and rise in food consumption, we recommend investors pay attention to cold storage in the next three years. This becomes even more appealing when considering the favourable government policy for industrial redevelopment, including the revitalisation scheme and standard rate measure, which is likely to continue positioning industrial assets as an attractive investment,” added Davies.

 

Get Realestate Asia in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

There were no new project launches in June.
The Osaka Umeda Twin Towers South will lead the supply throughout 2022.
Newcastle, Wollongong, and Gosbord are attracting hefty investments.
Investment sales surged to 86.3% in the second quarter despite tightened restrictions.
One company will invest US$10b in Japan, 70% of which will be invested in office buildings.
Institutional investors accounted for 71% of all commercial transaction volumes in the quarter.
This was boosted by two Blackstone portfolio sales - Milestone ($3.8b) and Kingdom II ($825m). 
Rents in Tokyo dropped 6.5% while Osaka and Nagoya recorded only 2.2% and 0.6% declines, respectively.
Occupancy rate in the Raffles Place / Marina Bay precinct reached 94.3% in Q2.
One of the demand drivers were tenants seeking small spaces of less than 1,000sqm.
Hong Kong’s strong export rebound and rise in food consumption would increase this asset’s value.
Island-wide rents declined 9.3% to S$26.20 per square foot per month in Q2.
This is a huge improvement from the 28% drop recorded in 2020.
It is also important to consider who pays for the technology infrastructure, the occupier or the developer? 
The APAC Prime Office Rental Index declined by just 0.8% despite Delta variant outbreaks.