ASIA-PACIFIC LOGISTICS MARKET RECORDS AVERAGE RENT GROWTH OF 2.4% IN 2024
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🛳️The Asia-Pacific logistics market is experiencing steady growth, with 14 out of 17 cities tracked recording increases or stability in rents. Knight Frank’s report shows that the logistics market in Asia-Pacific continues to grow with many notable trends in the first half of 2024.
✨ Key highlights:
Steady rent growth: Average rent growth of 2.4% year-on-year, although down sharply from 6.2% in 2023 due to slowing business activity in mainland China.
Market Divergence: While mainland China recorded a sharp decline in rents, Singapore led the region with the highest rent growth. Singapore’s total purchasing managers’ index remained in expansionary territory at mid-year.
H2 2024 Outlook: Tenants’ expansion plans will continue to decline, with cost optimization prioritised to maintain profitability in the face of continued rent growth.
📊 Asia Pacific logistics market data:
Vietnam market: Vietnam’s Southern Key Economic Region (SKER) recorded an increase of more than 5% over the past 6 months, driven by infrastructure development and e-commerce growth.
Singapore: Premium warehouse rents hit a record SGD 2.88 per square foot per month, driven by rising demand for cold storage space.
Mainland China: Rents have fallen sharply in Beijing and Shanghai, with vacancy rates exceeding 20%, due to slowing business activity and abundant new supply.
💪 Opportunities and challenges:
Infrastructure development: Demand for electric vehicle charging infrastructure and cold storage space is rising.
Market shift: The market is shifting from a landlord-dominated environment to a more balanced tenant-occupier environment, offering more choice to tenants.
Source: Knight Frank

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