“ Emerging areas with quality buildings and competitive rentals managed to absorb considerable relocation demand from traditional areas and achieved over 50% QoQ increase in net take-up.”

CARLBY XIE, SAVILLS RESEARCH



Most corporations with relocation demand were cost sensitive.

• No new Grade A office building was completed in Q2/2024, and the total stock remained at 7.1 million sqm by quarter end.

• Given the challenging market environment, most occupiers took prudent decisions about corporate real estate needs and solutions, and relocated their offices for cost-saving purpose. • Pazhou and the International Financial Town's combined net take-up totalled 44,113 sqm in Q2/2024, up 51.1% QoQ.

• The citywide vacancy rate edged down 0.5 ppt QoQ to 18.5% by the end of Q2/2024.

• Professional services and IT companies remained the most important demand generators in Q2/2024, taking up more than 30% of the total quarterly new leases.

• The citywide average rent decreased to RMB140.2 psm pmth by end-Q2/2024, with rental index down 1.4% QoQ and 5.1% YoY.

• In the short term, most office occupiers are expected to continue with their tightened CRE budget plans and the cost-saving campaign will inevitably restrict their rental thresholds of office space.