“Citywide net absorption improved significantly in the first half of 2026, although leasing demand remained heavily concentrated in secondary submarkets. By contrast, prime locations such as Zhujiang New Town have recorded negative net absorption for four consecutive quarters, and core office assets are likely to remain under pressure as new supply continues to enter the market.”---- Carlby Xie, Savills Research



Leasing Momentum Builds

• Three Grade A office projects were completed in the first half of 2026, adding approximately 159,634 sqm of office GFA. Two projects were delivered in Q2/2026, contributing 91,686 sqm of new office space.

• Continued office-to-hotel conversions partially offset the new supply, with Grade A office stock increasing 1.0% in Q2/2026 to 7.9 million sqm, up 4.8% YoY.

• Citywide net absorption totalled 82,414 sqm in Q2/2026, up 105% QoQ and 431.8% YoY. Net absorption reached 122,659 sqm in the first half of 2026, up 234.9% YoY.

• The citywide vacancy rate fell 0.3 ppts in Q2/2026 to 23.1%, although it remained 0.6 ppts higher YoY. Vacancy rates in secondary submarkets continued to decline, while prime submarkets remained under pressure.

• Finance, information technology, retail and trade, and media and entertainment remained the primary sources of leasing demand, with gaming and e-commerce companies continuing to expand.

• Grade A office rents fell 2.3% in Q2/2026 to an average of RMB114.8 psm pmth, down 8.9% YoY on a rental index basis.