“Emerging submarkets, particularly International Financial Town and Pazhou, continued to underpin leasing activity in 2025, though elevated vacancy reflects an ongoing structural adjustment as new supply outpaced demand.” —— Carlby Xie, Savills Research

Emerging submarkets drive absorption

• Ten new projects were delivered in 2025, adding 549,000 sqm of new supply. Total Grade A stock rose by 7.5% YoY to 7.7 million sqm by year-end.

• Cost control remained the primary driver of occupier decisions, with “cost reduction and efficiency improvement” continuing as the key market theme.

• Net absorption in emerging submarkets, including International Financial Town and Pazhou, totalled 179,000 sqm in 2025, up 66.4% YoY. However, citywide net absorption remained 22.0% below the five-year average.

• Guangzhou’s Grade A vacancy rate stood at 23.3% at end-2025Q4, up 0.3 ppts QoQ and 3.7 ppts YoY.

• The Grade A rental index fell by 1.1% in Q4/2025, taking average rents to RMB123.1 psm pmth, down 7.4% YoY.

• New supply in 2026 is forecast at 871,000 sqm, expanding Grade A stock by around 11.3% YoY.