Asia-Pacific H2 2023 Logistics Highlights

Powered by the acceleration in rental growth in Manila, overall rents in APAC maintained their upward trajectory to grow by an average of 6.2% year-on-year in H2 2023. However, near-term momentum indicated by half-yearly rental growth 
slowed to 1.5%, compared to 4.6% six months ago.

Leasing fundamentals in the Chinese Mainland continued to drag against a 
backdrop of a weak economy and substantial completions in and around Beijing and Shanghai. Total trade, which slowed significantly in 2023, substantially reduced the demand for logistics warehousing in the Chinese Mainland. To expedite the rental process, landlords have considerably reduced rents.

The region’s development pipeline will remain significant in 2024, adding 43.7% to existing stock, which will continue to ease tight supply conditions. The bulk of new supply will be delivered in Chinese Mainland markets, where over 17 million sqm completing in Beijing and Shanghai will continue to weigh on market conditions for most of 2024.