“Supply and demand disequilibrium remains an outstanding issue for the market for the rest of 2025. However, demand from the IT support and consulting, interactive media, and gaming sectors should provide a new impetus for demand growth, facilitating an upgrade of the city’s office tenant profile in the long run.”

CARLBY XIE, SAVILLS RESEARCH



Subdued demand

• Four new Grade A office buildings with a total of 162,895 sqm leasable office spaces were completed in Q2/2025, pushing the total stock to 7.5 million sqm by quarter end.

• Occupiers implemented more strict cost-saving strategies for real estate expenses against the backdrop of uncertain tariff policies and the challenging global trade environment since April 2025.

• The newly completed buildings in emerging areas with lower rental thresholds/occupancy costs have absorbed growing cost-saving driven relocation demand.

• The citywide quarterly net take-up fell to 15,496 sqm, down 26.7% QoQ; the semi-annual net take-up totalled 36,627 sqm, down 21.2% YoY.

• The citywide average vacancy rate increased to 22.6% by end-Q2/2025, up 1.5 ppts QoQ and 4.1 ppts YoY.

• The citywide average rent decreased to RMB127.4 psm pmth by the end of Q2/2025 with rental index down 1.3% QoQ and 6.5% YoY.

• The market is expected to see more aggressive leasing/rental pricing strategies from landlords considering the current fragile demand and another 410,434 sqm of new supply in 2H/2025.