The Greater Bay Area (GBA) economy expanded by 5.1% YoY in 2024, outperforming the national average by 0.1 ppts despite facing persistent external headwinds and weak domestic demand. Growth momentum moderated by 1.1 ppts from 2023 , but was supported by the rapid emergence of high-quality productive forces. In response, local governments across mainland GBA cities intensified efforts to foster strategic industries such as artificial intelligence (AI), the low -altitude economy, and biopharmaceuticals.

The GBA office leasing market remained in a corrective phase. Net take -up totalled approximately 500,000 sqm — just 22.0% of 2021 levels — falling short of even a decade -low new supply volume. As a result, the regional average vacancy rate rose for a sixth consecutive year, reaching 28.0% by end -2024, up 0.5 ppts YoY.

Amid ongoing pressure to cut costs, occupiers continued to prioritise CAPEX control and implement CRE strategies focused on relocation and consolidation. Landlords responded with deeper rental concessions, supporting modest demand recovery but weighing heavily on pricing. The GBA office rental index declined by 7.0% YoY, marking a cumulative drop of 28.6% from its 2018 peak. All GBA cities recorded rental declines of between 4.9% and 9.0% YoY.

In the sales market, buyer interest remained limited and price sensitivity intensified. The GBA office price index fell by 9.4% YoY — a 28.0% cumulative decrease from its historical high. All cities except Guangzhou saw price declines exceeding 8.5%, highlighting broader pricing pressure and a more significant correction in capital values than rents.

Looking into 2025, the external environment is expected to remain challenging, with global trade tensions continuing to weigh on growth prospects. Even so, expanding policy support and targeted government incentives should help stimulate endogenous demand, offering a measure of support to the GBA office market amid ongoing uncertainty.