Industrial property investment turnover and volume slumps in Q1 2016

Due to industrialization revitalization scheme expiry.

It has been noted that investment turnover and volume for industrial properties dropped in Q1 2016.

According to a research note from CBRE, this follows after the expiry of the industrial revitalization scheme, with only three transactions worth over US$10 million registered.

Meanwhile, total value of trade in goods in Hong Kong dropped 8.2% y-o-y in January and February combined, its worst performance since 2009.

Here's more from CBRE:

A total of 114,000 sq. ft. of factory space was taken up by the top five self-storage operators in Q1.

The government extended its concessionary scheme for data center development, signaling its recognition of the urgent need for data center space to cater to long term industry demand.

Despite weak external trade, overall warehouse rents rose 0.4% q-o-q; rents for direct-ramp access space were flat; and rents for cargo-lift access space edged up 1.1% q-o-q. Noticeably there was strong take-up in ATL, the largest logistics facility in Hong Kong.

Rents for I/O buildings registered a 2.3% q-o-q decline due to increased competition from recently launched revitalized buildings.