Real Estate & Infrastructure CommitteeCommittee Activities

Demand for Cold Storage to Remain Strong

A Heating Up in the Market for Cold Storage? Opportunities, Trends and Outlook

Demand for cold storage in Hong Kong will likely remain strong in the future, thanks to supply chain demand from activities including e-commerce and vaccine distribution. 

At a webinar on 8 September, Rosanna Tang, Head of Research, Hong Kong and Greater Bay Area at Colliers, shared the latest findings on Hong Kong’s cold storage market. Despite being a niche sector, it offers considerable potential for institutional investors, given the higher rental premium that cold storage facilities relative to regular warehouses. 

John Davies and Pureanae Jang, respectively Executive Director and Associate Director with Colliers, also provided insights on the outlook for the cold storage market. 

Tokenisation provides new funding opportunities for developers but may be tempered by legal issues

Tokenising Real Estate – How Does It Work and What to Expect?

Tokenisation lowers the barriers to entry for real estate investment by enabling interests in the asset to be more readily divided across a wider pool of investors. But attention should be paid to potential legal and regulatory uncertainties, given that such new technology is not currently subject to regulation, compared to traditional investment products. 

At a webinar on 6 August, Hannah Jeong, Head of Valuation & Advisory Services at Colliers, discussed the opportunities and challenges arising from the tokenisation of real estate. She said that while tokenisation can be a new source of financing for property developers, the current lack of regulatory oversight in Hong Kong may constrain the rate of adoption. 

Outlook for grade-A segment expected to stabilise in the second half of 2021

The Hong Kong Office Market in Uncertain Times

Hong Kong’s grade-A office rents are expected to stabilise in the second half of 2021, although this will depend on how quickly Covid-19 vaccines are rolled out and the relaxation of travel restrictions. 

Simon Smith, Senior Director for Research & Consultancy at Savills, discussed the likely trends for Hong Kong’s office market at a webinar on 11 March. He said that grade-A office rents were expected to drop by a further 5% in the first half of 2021 before recovering, while vacancy rates would peak this year. Head of Office Leasing Ricky Lau also shared his thoughts on the demand outlook for offices in the core business district, as well as areas outside of Hong Kong’s main CBDs. 

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