"The market remains under significant pressure, as structural oversupply and sluggish occupier sentiment weigh heavily on leasing activity. Landlords are increasingly resorting to aggressive incentives and flexible leasing models in a bid to retain tenants and stabilise occupancy."

"Investor caution and divergent pricing expectations continue to define Shanghai’s commercial property market in Q2/2025. While private capital remains active in small to mid-sized assets, institutional and foreign players are largely on the sidelines. The market reflects a broader recalibration, where liquidity is available but only selectively deployed, favouring resilient sectors and opportunistic strategies."

"Beijing’s retail market experienced an accelerated upgrade in the first half of 2025. Multiple urban renewal projects were launched, driving consumption scenario improvement and reshaping the consumption value. Park-style retail performed strongly in the quarter, while the integration of trendy international brands with traditional IPs further redefined consumption models."

"We’re seeing a shift from simplistic classifications to nuanced tenant segmentation, with operators tailoring products to align with how people live, spend, and prioritise quality."

"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."