The leasing market turns languid after the mild increase in new take-ups in the previous quarter

• Besides the still-weak leasing demand, the subdued sentiment in leasing was partly attributable to the seasonality of the third quarter, which is typically a relatively quiet period of the year.
• Limited new take-up cases were observed with most activity being renewals.

Vacancy rate moves up marginally to 8.2%

• Negative net absorption narrowed to 144,100 sq ft (GFA).
• There was no new supply of prime warehouses in Q3 2024.

Driven by two significant transactions, the investment volume rebounds in Q3 2024

• JINGDONG Property confirmed its acquisition of Li Fung Centre in Shatin. The consideration was reportedly HKD 1.8 billion (HKD 3,693 per sq ft, GFA).
• Meanwhile, Jiayuan International sold the majority of One Vista in Tuen Mun reportedly for HKD 1.4 billion (HKD 5,779 per sq ft, GFA). The One Vista buildings were revitalised industrial buildings with the approval for office redevelopment from the Town Planning Board.

Outlook: Geopolitical conflicts represent a major wildcard for local trade performance

• The outcome of the US presidential election could significantly influence the global trade landscape, potentially affecting the outlook for trade performance.
• The forecast of a further decline in rents and capital values is maintained in Q3 2024.