Aggregate trade value fell by 8.1% y-o-y in July and August combined. Transshipments between the U.S. and China through Hong Kong weakened by 8.4% y-o-y over the same period, marking three consecutive quarterly declines. The contraction in airfreight accelerated to 9.8% y-o-y in July and August combined, the sharpest fall since Q2 2009.
Leasing momentum continued to slow in Q3 2019 as occupiers retained their wait-and-see approach. Occupiers with less exposure to domestic and international disputes, such as data centres and beverage logistics companies. continued to support leasing activity.
Warehouse vacancy edged down slightly by 0.1% points to 1.6%, marking the fourth consecutive quarter that vacancy has been below 2.5%.
Rents for ramp-access buildings rose by 1.2% q-o-q while those for cargo-lift access buildings increased 0.1% q-o-q. Overall warehouse rents grew by 0.8% q-o-q. As immediate vacancy will remain limited, warehouse rents are therefore expected to be stable for the remainder of 2019.