Australian cities Sydney and Brisbane were among the top three cities in the Asia-Pacific region, with industrial land rents rising 16.7% and 15.3% respectively in 2023 compared to the previous year, according to a study that tracked 17 Australian cities. Cities in this region.
Hong Kong ranked fourth in this category, with rents increasing by 9% year-on-year. In the second half of 2023, the city's rental growth rate was the second best at 4.7%.
Mr Lee said rents were likely to rise by more than 5 per cent in cities on Australia's east coast this year.
According to local media reports, citing a study by data analytics provider GlobalData, e-commerce sales in the Philippines are expected to reach US$19 billion in 2026, growing at an average annual rate of 17.9% from 2022.
Growth in online retail sales was underpinned by the country's 5.6% economic growth last year, making it Southeast Asia's fastest-growing economy.
Knight Frank said growth in logistics property rents in Manila contributed to the overall rise in the Asia-Pacific region.
“Rents across the Asia-Pacific region are expected to maintain their upward trajectory, increasing by an average of 6.2% year-on-year in the second half of 2023,” the report said. “However, the short-term momentum shown by half-year rent growth has slowed to 1.5% from 4.6% six months ago.”
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However, rental growth for industrial space could not be replicated in mainland China. Shanghai and Beijing are at the bottom of the ranking, with rents falling 5.9% and 2.8% respectively last year.
“Rents in Beijing and Shanghai have softened, weighed down by ample warehouse supply and weak trade,” the Knight Frank report said. “Rents in surrounding cities are very favorable, attracting tenants from Shanghai and Beijing, further reducing demand.”
The only other places in the region where rents fell last year were 0.1% in Greater Jakarta and 0.6% in Bangkok.
Regarding the outlook for logistics real estate rental rates this year, Li said there will be significant supply due to the rich development pipeline and sublease opportunities available.
As a result, the impact on rents will be uneven across the region, he added.
“Vacancies are tight in Pacific markets due to strong pre-commitments, but Southeast Asia and India will continue to benefit from supply chain diversification,” Lee said.
“In contrast, mainland China will take some time to absorb a significant pipeline given the economic downturn.”
