“Beijing’s Grade-A office market recovered steadily in 2024. Limited new supply in the year provided landlords with a good opportunity for destocking. Meanwhile, the prevailing ‘price-for-volume’ strategy aligns with corporate tenants’ rigid demand for cost reduction and efficiency improvement. As favourable real estate policies gradually take effect, they are expected to drive overall industry stabilization and improvement, creating critical development opportunities for the office market.”

VINCENT LI, SAVILLS RESEARCH



Beijing office market recovery continues

• In Q4/2024, the Grade A office market in Beijing saw one new project and 129,000 sqm of new supply. By the end of 2024, the citywide Grade A office stock reached 15.37 million sqm (including self-use areas).

• Throughout 2024, the overall new supply of Grade A office in the city reached 178,400 sqm, a significant decline compared to last year. The intensity on the supply side of the office market has eased, alleviating market destocking pressure.

• Thanks to the strong leasing performance of the new project, Beijing office market’s leasing demand continued to pick up with a quarterly net absorption of 118,000 sqm, up 48% quarter-on-quarter (QoQ).

• In 2024, the annual total net absorption of Grade A office market across the city reached 285,000 sqm, up 123.6% QoQ.

• In Q4/2024, benefiting from the increase of net absorption, Beijing Grade A office vacancy rate remained stable at 19.4%, down 1 percentage point (ppt) year-on-year (YoY).

• Meanwhile, Beijing Grade A office rents continued to decline by 6.2% QoQ to an average of RMB247 psm pmth, down 18.5% YoY.