• Worsening economic conditions coupled with the COVID-19 outbreak impacted trading activity in Q1 2020, with aggregate trade value falling by 10.6% y-o-y in the first two months of the year, increasing the likelihood of a fifth consecutive quarterly decline.
  • Hong Kong’s re-exports from China slid by 10.7% y-o-y in Q4 2019 and fell by 8.2% y-o-y in 2019. The decline accelerated to 21.5% y-o-y in the first two months of 2020, reflecting the suspension of business activity in China.
  • Leasing momentum weakened over the quarter, with occupiers observed to be seeking cost-saving options in anticipation of weaker short-to-medium demand.
  • Relatively strong sources of leasing activity during the quarter included the electronics industry, particularly firms involved in sectors related to 5G development.
  • Demand for redevelopment projects remained firm in spite of the weak market conditions. Four industrial buildings changed hands this quarter.