“Abundant policy support since 2023 and the establishment of an efficient and complete industrial system helped attract a growing number of new quality productivity businesses to set up in Shenzhen. This has generated a significant increase in leasing demand for offices and supported the quarterly net take-up growth throughout the year.”

CARLBY XIE, SAVILLS RESEARCH



Vacancy rates down

• Shenzhen’s economic growth continued to top among the four first-tier cities, with GDP increasing by 5.4% YoY to RMB2,593.4 billion as of end-Q3/2024.

• The citywide total stock remained at 11.4 million sqm as there was no new supply added to the market in Q4/2024.

• The citywide net take-up increased quarter by quarter throughout 2024, registering 99,697 sqm in Q4 and simultaneously, the annual net take-up spiked by 42.8% YoY to 311,777 sqm.

• The citywide vacancy rate decreased by 0.9 ppt QoQ to 29.0% as of end-Q4/2024.

• The citywide average rent of the Shenzhen Grade A office property market declined by 3.3% QoQ and 9.0% YoY on a rental index basis, to RMB151.1 psm pmth by the end of 2024.

• In 2025, a plethora of new supply of approximately 961,317 sqm is scheduled for completion, which should bring about more pressure on the overall leasing market.