“As leasing pressure persists, landlords continue to explore new operating models, while more developers are looking to sell previously self-held leasing assets.” —— Sophy Pan, Savills Research 



New Supply Maintains Market Pressure

• New Grade A office supply totalled 154,000 sqm in H1/2026.

• Several existing projects recorded strong absorption in Q1/2026, although leasing activity lost momentum in Q2/2026.

• Citywide net absorption reached 53,000 sqm in H1/2026, improving both year-on-year and from the previous six months, although overall absorption remained slow.

• Financial services remained the largest source of demand in H1/2026. Supported by several large transactions in Q1/2026, information technology ranked second by leased area.

• Demand continued to shift towards fitted, move-in-ready offices, supporting further expansion by flexible workspace operators.

• Weak pre-leasing at newly completed projects pushed the citywide Grade A office vacancy rate up 3.6 ppts YoY to 37.0%.

• Most new Grade A office supply in H2/2026 is expected to be delivered in Financial City East, Financial City and Tianfu New Area