"Demand continued to improve, supported by technology sector expansion and workplace consolidation. However, it remained insufficient to absorb new supply, leaving market conditions firmly in tenants' favour.”– James Macdonald, Savills Research



International Grade A Supply Enters the Market

• Shanghai added 2,147 foreign firms in the first four months of 2026, up 8.7% YoY, above the national average of 6.8%.

• Three new projects were handed over in Q2/2026, adding 390,700 sqm of supply. Grade A office stock totalled 21.0 million sqm (including self-use space).

• Net take-up totalled 195,300 sqm in Q2/2026, up 14.1% QoQ. H1 net take-up was 1.3 times the full-year total of 2025.

• Citywide vacancy rose 0.5 ppts in Q2/2026 to 24.3%. Xujiahui's vacancy jumped 29.2 ppts to 43.1% due to substantial new supply.

• Huangpu District recorded the lowest vacancy rate at 18.8%, covering Old Huangpu, South Huangpu and part of Huaihai Road (M).

• Demand from financial services, retail & trade, and M&E remained stable. Consumer services and co-working demand increased, with the latter associated with higher vacancies and shrinking demand size.

• Grade A office rents fell 2.0% QoQ to RMB4.8 psm pday.