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.”

VINCENT LI, SAVILLS RESEARCH



Beijing office market picked up slowly but steadily

• In Q2/2024, no new Grade A office project was launched in the Beijing office market, maintaining the citywide Grade A office stock at 15.21 million sqm (including self-use areas).

• The leasing demand in the Beijing office market continued its upward trend from the previous quarter, with a quarterly net absorption of 56,000 sqm, up 84% quarter-on-quarter (QoQ).

• Thanks to the increasing absorption, Beijing Grade A office vacancy rate decreased by 0.4 percentage points (ppts) QoQ to 19.8%.

• Meanwhile, Grade A office rents declined by 5.2% QoQ to an average of RMB280.3 psm pmth, down 10.3% year-on-year (YoY).

• In the second half of 2024, Beijing’s Grade A office market is expected to continue its recovery while several new projects may be launched. Therefore, the Beijing office market is restructuring the balance between supply and demand simultaneously.