"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."

"In Q4/2024, Tianjin Grade A office market remained sluggish with slow absorption and declining rents. The narrowing rental differentials between projects have compelled landlords to offer preferential business terms, upgrading services and customized solutions to meet tenant demands. With the anticipated increase in market supply over the next two years, short-term vacancy rates are unlikely to decline. Landlords need to actively adjust their leasing and operation strategies to respond to industry trends and evolving tenant demands."

"In 2024, landlords generally adopted rental concession strategies as the supply side was at low levels and the demand side was under significant pressure. It is anticipated that supply will pick up in 2025, and demand is unlikely to improve substantially in the near future."

"In 2024, the Beijing en-bloc investment market faced increasing pressure amid various internal and external challenges and a complex macroeconomic background. The value of different asset classes has been directly or indirectly impacted by fluctuations in the real estate market, leading institutional investors to adopt a generally cautious approach. As a result, market sentiment for investments has declined compared to previous years."

"Longfor Group’s first retail project in Tianjin, Longfor Tianjin Meijiang Paradise Walk, was launched in August, accelerating the formation of a Tianjin’s new retail landscape in non-primary retail. The retail market has shown stable performance this quarter, with brand expansion picking up, leading to an overall decline in vacancy rates compared to previous years."

"Accelerated promotion for digital industry development should boost office leasing demand in the sector, especially Jiangbei District, where such enterprises gather and policy support is in place."

"In Q2/2024, Beijing’s retail market remains robust. Three new projects were launched in the quarter and enriched consumers’ shopping options. Major shopping malls continued to adjust and upgrade their brand portfolios, while the Beijing government introduced multiple policies to stimulate consumption and enhance market vitality. Overall, 2024 saw steady growth in Beijing’s retail market, supported by economic recovery and the upgrades in new and existing retail projects."

"In the first half of 2024, Beijing’s Grade A office market recovered steadily. With no new supply projects and a gradual recovery in demand, market activity showed signs of improvement. In the remainder of 2024, Beijing’s office market is expected to see several new projects, further stimulating competitions and potentially causing new fluctuations in vacancy rates."

"En-bloc investments are considered the barometer of the commercial real estate market, directly reflecting investment trends and expectations. In H1/2024, Beijing’s en-bloc investment market continued to post steady performance and the half-year transaction volume outnumbered last year. Looking ahead, commercial real estate’s continued recovery will further boost market confidence and en-bloc investments in the future."

"Chengdu is expected to see 200,000 sqm of Grade A office supply in H2/2024, adding to the over 4 million sqm of total stock at the time. The market will continue to face greater destocking pressure, as it may be difficult for rental demand to grow significantly in the short term."