Hong Kong is most expensive logistics market globally
Hong Kong was named the most expensive prime logistics market in the world in 2015, with rent averaging US$28.94 per square feet (psf) per year, according to new report by CBRE.
The report, which tracks the rents of prime logistical facilities, said that rents increased globally last year due to demand in the e-commerce space.
“Global consumer demand is strong, and an ever-increasing share of retail sales are taking place online,” CBRE global chief economist Richard Barkham said in the report.
Globally, prime logistic rents grew 2.8 per cent year-on-year, led by strong growth in US coastal markets, according to the report.
Prime logistics rents in the US rose 5.6 per cent, outpacing Asian growth, which was 2.5 per cent. Europe, the Middle East and Africa saw 0.8 per cent growth.
Densely-populated markets with higher land costs, such as Hong Kong, topped the list. The world’s 10 most expensive rental markets (in descending order) where: Shenzhen, China, US$8.27; Sydney, Australia, US$ 8.34; Leeds-Sheffield, UK, US$8.45; Manchester-Liverpool, UK, US$8.75; Shanghai, China, US$9.44; Stockholm, Sweden, US$9.90; Singapore, US$10.91; London, UK, US$16.36; Tokyo, Japan, US$16.74; and Hong Kong.