Hong Kong Special Report - Retailers Expose The Lack of Warehouse Facilities August 2014
The recent slowdown in tourism and retail sales growth does not stop CBRE from believing that Hong Kong will remain one of the world’s leading shopping destinations in the future. In order to maintain momentum to further develop Hong Kong’s tourism and retail sectors, the government needs to be more proactive in facilitating logistics sector growth.
In this paper, we will demonstrate the growing relationship between the retail sector and the logistics market in Hong Kong over recent years. The warehouse market is currently running on close to full occupancy with a clear imbalance between occupier demand and supply. It is important to maintain long-term housing market stability by allocating land resources for residential development. It is also crucial to upkeep Hong Kong’s financial sector strength by facilitating the development of new office clusters; however, it will handicap the growth of our retail and logistics sectors – two key pillars of the Hong Kong economy – if we fail to address the storage needs of the retailers in the city for both their local and regional distribution needs.