“Driven by corporates’occupational needs and equally important, landlords’ wish to attract tenants with strong incentives, more leasing demand was unleashed in the market, pushing up the citywide net take-up in this quarter.”

CARLBY XIE, SAVILLS RESEARCH



Large-scale office leasing transactions increased during Q2/2024.

• No new supply was added to the market in Q2/2024, and the citywide total stock remained at 11.2 million sqm.

• In Q2/2024, the citywide net take-up increased by 1.4 times to 84,101 sqm.

• The citywide vacancy rate decreased by 0.7 ppt QoQ to 29.8% at the end of the quarter.

• During Q2/2024, IT companies (especially software & services companies) and financial companies (banks, securities and investment companies) dominated the market digestion, as their combined leasing deals accounted for 52.9% of the citywide total.

• The citywide average rent of the Shenzhen Grade A office property market declined by 2.1% QoQ and 7.9% YoY on a rental index basis, to RMB160.4 psm pmth by the end of Q2/2024.

• New supply should remain abundant in 2H/2024(approximately 315,712 sqm), which should inevitably lead to persistent pressure on market digestion and rental movement in the rest of 2024.