“Q3 was so far the best season of 2024 in terms of leasing transaction volume. Some particular submarkets such as Qianhai and Shenzhen Bay SHB managed to attract an increasing amount of relocation leasing demand for financial considerations and premise upgrade.”

CARLBY XIE, SAVILLS RESEARCH



Leasing activities increase

• Shenzhen’s GDP increased by 5.9% YoY to RMB1,730.2 billion as of end-1H/2024, continually outperforming all other first-tier cities.

• Two new projects with a combined lettable GFA of 148,050 sqm were completed during Q3/2024, expanding the total stock by 6.1% YoY to 11.4 million sqm as of quarter-end.

• In Q3/2024, citywide net take-up increased by 10.9% QoQ to 93,251 sqm.

• The citywide vacancy rate structurally edged up by 0.1 ppt QoQ to 29.9% at the end of the quarter.

• The citywide average rent of the Shenzhen Grade A office property market declined by 2.1% QoQ and 6.7% YoY on a rental index basis, to RMB156.2 psm pmth by the end of Q3/2024.

• New supply will still be abundant in Q4/2024, with approximately 173,709 sqm scheduling for delivery, all located in emerging areas.