"In Q2/2025, the Tianjin Grade A office market faced tough circumstances like slowing demand, declining rents and sustained absorption pressure. The pressures from existing vacant space and new supply will intensify the competition in 2H/2025. However, the operational innovations and improved amenities in the office buildings are considered the key to breaking through the downward cycle."

"Beijing’s en-bloc investment market remained stable in H1/2025, with transaction volumes exceeding last year. Apart from end-users, the market focused on cash flow condition. Developers sell their projects to reclaim funds, lower the leverage and improve liquidity, while institutional investors prefer well-managed assets with stable cash flow. "

"In 1H/2025, Beijing’s Grade A office market continued to recover and saw a significant net absorption due to increased market activity. Consequently, landlords are adapting their leasing strategies in anticipation of a modest decline in vacancy rates in the short term. However, structural differentiation will impact market performance and recovery due to different circumstances across submarkets. "

"With the continuous new supply during H1/2025, the average vacancy rate by quarter-end exceeded 40%. Despite resilience in the IT and service sectors, rental declines accelerated."

"The market is no longer defined by broad-based growth, but by selective convictions. Investors are focusing on assets with resilient income, clear pricing, and long-term relevance in an increasingly challenging environment."

"The commercial real estatemarket is adapting to a newenvironment, with increasedpolicy support providing afoundation for stability. Whilechallenges remain, there areemerging opportunities forlong-term growth, particularlyfor investors seekingdiversification in uncertaintimes."

"Leasing market uncertainty continued to increase not only because of the persistent imbalance between supply and demand but also the global tariff-driven economic slowdown and other considerations. Stabilising occupancy of office properties becomes more prevalent for most landlords in 2025 regardless of rental changes."

"Despite the consumption downgrade which has been widely discussed lately, Shenzhen’s retail property market continues to benefit from support of policies, demographic advantages and Hongkongers’ “Go North to Spend” campaign, distinguishing itself from other GBA peers in terms of more diversified brand penetration."

"While new projects are taking longer to lease, improving consumer sentiment and brand innovation are laying the foundations for a stronger recovery."

"While it’s encouraging to see a more proactive government stance, its impact on the market will take time to materialise, and the full extent remains uncertain, meaning any market recovery is likely to be gradual."