MARKET OVERVIEW
Beijing office market showed signs of recovery and performed better than expected at the beginning of 2024. After the pandemic from previous years, the overall economic has recovering steadily. Leasing demand in the Beijing office market saw a decent rebound in Q1/2024. Thanks to the declining volume of new supply this year, landlords could seize the opportunities to accelerate the destocking process in the Beijing office market.
The Grade A office market in Beijing saw no new projects in Q1/2024 and the citywide Grade A office stock remained at 15.21 million sq m (including self-use areas). The citywide vacancy rate edged down by 0.2 percentage points (ppts) quarter-on-quarter (QoQ) to 20.2% while the Grade A office rent fell 2.5% QoQ to an average of RMB295.7 per sq m per month.