china briefings

"In 2024, annual new supply reached 35,000 sqm, with an over 70% YoY decrease, but net absorption declined YoY as well. By year end, the average vacancy rate was down to 38.2% and the rent decline accelerated throughout the year."

"Amid macroeconomic pressures, consumers are spending more cautiously, prioritising value for money. Cross-category integration is a key focus, requiring new projects to align with market demand and testing the leasing capabilities of operational teams."

"The investment market is showing signs of increased activity, driven by the availability of more high-quality assets, ongoing monetary easing, and asset repricing, despite the challenging economic conditions."

"Despite ongoing challenges, the government has increased policy support, signalling a more unified approach to economic issues. This shift is expected to bring stability to the market, create new opportunities, and act as a catalyst for recovery, even amid uncertainty."

"While it’s encouraging to see a more proactive government stance, its impact on the market will take time to materialise, and the full extent remains uncertain, meaning any market recovery is likely to be gradual."

"In 2024, landlords generally adopted rental concession strategies as the supply side was at low levels and the demand side was under significant pressure. It is anticipated that supply will pick up in 2025, and demand is unlikely to improve substantially in the near future."

"In Q4/2024, Tianjin Grade A office market remained sluggish with slow absorption and declining rents. The narrowing rental differentials between projects have compelled landlords to offer preferential business terms, upgrading services and customized solutions to meet tenant demands. With the anticipated increase in market supply over the next two years, short-term vacancy rates are unlikely to decline. Landlords need to actively adjust their leasing and operation strategies to respond to industry trends and evolving tenant demands."

"In 2024, the Beijing en-bloc investment market faced increasing pressure amid various internal and external challenges and a complex macroeconomic background. The value of different asset classes has been directly or indirectly impacted by fluctuations in the real estate market, leading institutional investors to adopt a generally cautious approach. As a result, market sentiment for investments has declined compared to previous years."

"Longfor Group’s first retail project in Tianjin, Longfor Tianjin Meijiang Paradise Walk, was launched in August, accelerating the formation of a Tianjin’s new retail landscape in non-primary retail. The retail market has shown stable performance this quarter, with brand expansion picking up, leading to an overall decline in vacancy rates compared to previous years."

"Accelerated promotion for digital industry development should boost office leasing demand in the sector, especially Jiangbei District, where such enterprises gather and policy support is in place."