The Asia Pacific logistics sector is at a crossroads amid geopolitical uncertainties and evolving market dynamics, according to Knight Frank in its Asia-Pacific H2 2024 Logistics Highlights report.
While 14 of 17 tracked cities recorded stable or increasing rents year on year in the second half 2024, the report unveils a stark contrast in regional performance. Overall rent growth for logistics spaces in Asia Pacific slowed to just 0.2 percent in 2024, down sharply from 7 percent in 2023 and 2 percent in the first half of 2024.
This deceleration, however, masks significant market variations across the region. Markets in the Chinese mainland face headwinds, with Beijing and Shanghai experiencing 14 percent to 15 percent rent plunges due to a substantial development pipeline, which is expected to reach over 4 million square meters (43 millio
