Hong Kong Viewpoint - Moving Hong Kong’s Logistics Real Estate up the Value Chain

Hong Kong is transforming into an international smart logistics hub specialising in high-value goods and high value-added services. Sustained growth in cross-boundary e-commerce and the trade of high-value goods will create significant opportunities for Hong Kong's logistics industry. To meet the growing demand for modern logistics services, logistics occupiers must utilise automation technology and upgrade their real estate to improve operational efficiency. As modern logistics operations require higher vertical clearance, logistics rental costs need to be assessed on a 3D basis to factor in the crucial element of ceiling height. While Kwai Tsing is currently the major logistics hub in the city, the government should consider offering differentiated modern logistics facilities in the Northern Metropolis to suit the needs of different types of logistics occupiers.