How sluggish trade activity is affecting industrial leasing

Aggregate trade dropped 33.4% YoY in January.

Despite slower trade activity in Hong Kong, the industrial market still recorded several notable sales transactions in the first three months of the year, according to JLL.

In March, Tungtex Building in Kun Tong was sold for $790m. 

The 11th floor of the Well Town Industrial Building and the ground floor of the Kin Sang Industrial Building were sold for $71.0m and  $43.8m, respectively, in February.

The real estate firm said there was a “rare case of new lettings” in February when Keysida Electronics Co. (Hong Kong) obtained 10,597 sq ft at Chuan Kei Factory Building in Kwai Chung.

JLL also reported that SUNeVision plans to redevelop iAdvantage Jumbo located in Tsuen Wan into an 18-storey data centre, increasing the GFA from 120,000 to 190,000 sq ft.

In January, Hong Kong’s imports dropped to 30.2% YoY, slower than the 23.5% decline in December 2022, according to data from the Census and Statistics Department. Total exports also dipped 36.7% in January from a 28.9% contraction in December 2022.