“In Q3/2024, Beijing’s Grade A office market further recovered, led by strong leasing demand release. On the supply side, a new project was completed with a strong pre-leasing performance. Meanwhile, demand remained steady this quarter, and market activity is quickly picking up. The government’s comprehensive real estate supporting policies launched in late September is expected to provide positive momentum and opportunities for Beijing’s office market.”

VINCENT LI, SAVILLS RESEARCH



Office market saw steady leasing demand recovery

• ­­In Q3/2024, one new Grade A office project in Zhongguancun was launched into the Beijing office market. The citywide Grade A office stock stands at 15.24 million sqm (including self-use areas).

• ­­The leasing demand in the Beijing office market continued to pick up with a quarterly net absorption of 79,885 sqm, up 42% quarter-on-quarter (QoQ).

• ­­Thanks to the increasing absorption, Beijing Grade A office vacancy rate decreased by 0.4 percentage points (ppts) QoQ to 19.4%.

• ­­Grade A office rents declined by 6.3% QoQ to an average of RMB263.3 psm pmth .

­• ­­By 2024, Beijing Grade A office market is expected to remain active due to increased demand in the first three quarters. As the supply and demand sides undergo the rebalancing process , the market is likely to experience sustained improvements.