“Leasing market uncertainty continued to increase not only because of the persistent imbalance between supply and demand but also the global tariff-driven economic slowdown and other considerations. Stabilising occupancy of office properties becomes more prevalent for most landlords in 2025 regardless of rental changes.”

CARLBY XIE, SAVILLS RESEARCH



Low transaction level and high uncertainties

• Shenzhen’s GDP increased to RMB3,680.2 billion in 2024, up 5.8% YoY. The growth was 0.8 and 2.3 ppts higher than the national and provincial average, respectively.

• Three new projects with a combined lettable GFA of 209,504 sqm were completed during Q1/2025, expanding the total stock by 1.8% QoQ to 11.6 million sqm as of quarter-end.

• The overall market activity hovered at a low level, with the quarterly net take-up decreasing by 33.1% QoQ to 66,654 sqm.

• The citywide vacancy rate increased by 0.7 ppt to 29.8% as of quarter-end.

• The citywide average rent of the Shenzhen Grade A office property market declined by 2.8% QoQ and 10.0% YoY on a rental index basis, to RMB146.4 psm pmth.

• In 2025, pressure on market digestion and rental growth remains inevitable, considering the increasing challenges on the external environment, e.g., escalating global trade tensions, and the continued imbalance of new supply and demand.