“In 1H/2025, Beijing’s Grade A office market continued to recover and saw a significant net absorption due to increased market activity. Consequently, landlords are adapting their leasing strategies in anticipation of a modest decline in vacancy rates in the short term. However, structural differentiation will impact market performance and recovery due to different circumstances across submarkets. ”

JAMES MACDONALD, SAVILLS RESEARCH



Market recovery accelerates

• In Q2/2025, one new project, China Overseas Finance Center in Beijing Financial Street Vicinity, entered the Grade A office market. The citywide Grade A office stock increased to 14.97 million sqm (including self-use areas).

• The leasing demand kept picking up in Q2/2025, with net quarterly absorption rising by 57% quarter-on-quarter (QoQ) to 82,000 sqm.

• Driven by strong demand, office spaces was effectively absorbed in Q2/2025. The city’s Grade A office vacancy rate dropped 0.2 percentage points (ppts) QoQ and 0.9 ppts year-on-year (YoY) to 19.6%.

• The downward trend in average rents for Beijing Grade A office slightly slowed down by 2.4% QoQ to an average of RMB228.4 psm pmth.

• In 2H/2025, Beijing Grade A office market is expected to continue its recovery. Thanks to limited new supply and active leasing demand, the window remains open for prime property destocking.