“The overall market landscape is expected to remain largely unchanged in 2025 given the current global political and economic contexts, occupiers’ stringent cost control, as well as a nine-year supply peak. The importance of domestic demand speaks for itself.”

CARLBY XIE, SAVILLS RESEARCH



Emerging areas accommodate more upgrade demand

• Three new Grade A office buildings with a total of 110,014 sqm space were handed over in Q4/2024, pushing the total stock to 7.2 million sqm by end-2024.

• Demand growth remained subdued, and citywide annual net take-up dropped to 58,235 sqm in 2024, 66.0% lower than the past five-year average level.

• The citywide average vacancy rate increased to 19.6% by end-Q4/2024, up 1.5 ppts QoQ and 1.9 ppts YoY.

• The New Quality Productive Forces sustained emerging areas’ market digestions, while the finance and professional services industries remained the major demand sources for prime areas.

• The citywide average rent decreased to RMB135.4 psm pmth by the end of 2024 with the rental index down 1.5% QoQ and 4.9% YoY.

• New supply for 2025 amounts to 926,086 sqm, a new peak since 2016.