china briefings

"While the overall leasing market was relatively calm, some Tech Giants’ office relocation brought about disruptions to the market and, together with the impacts of new completions, the citywide average vacancy rate increased."

"The younger generation of shoppers today are looking for more than just products—they want experiences that make them feel good and reflect their identity. Brands that can create emotional connections are more likely to stand out, build lasting loyalty, and drive repeat purchases, even in the current market. "

"In 1H/2025, the Chengdu Grade A office market saw weak demand and negative net absorption. State-owned enterprises leased out previously self-occupied buildings, diversifying supply. Weak demand and high supply pushed up vacancy rates and lowered rental levels."

"In Q2, Tianjin’s holiday economy continued to gain momentum and unleash strong consumer demand. To keep pace with the evolving consumption trends, the Tianjin retail market increasingly focused on upgrading existing stock. The focus has shifted from large-scale renovations to a deeper restructuring of consumption value. Meanwhile, Tianjin’s ongoing efforts to build an international consumption centre are expected to become a new engine for driving retail market growth."

"The market remains under significant pressure, as structural oversupply and sluggish occupier sentiment weigh heavily on leasing activity. Landlords are increasingly resorting to aggressive incentives and flexible leasing models in a bid to retain tenants and stabilise occupancy."

"Investor caution and divergent pricing expectations continue to define Shanghai’s commercial property market in Q2/2025. While private capital remains active in small to mid-sized assets, institutional and foreign players are largely on the sidelines. The market reflects a broader recalibration, where liquidity is available but only selectively deployed, favouring resilient sectors and opportunistic strategies."

"Beijing’s retail market experienced an accelerated upgrade in the first half of 2025. Multiple urban renewal projects were launched, driving consumption scenario improvement and reshaping the consumption value. Park-style retail performed strongly in the quarter, while the integration of trendy international brands with traditional IPs further redefined consumption models."

"We’re seeing a shift from simplistic classifications to nuanced tenant segmentation, with operators tailoring products to align with how people live, spend, and prioritise quality."

"In Q2/2025, the Tianjin Grade A office market faced tough circumstances like slowing demand, declining rents and sustained absorption pressure. The pressures from existing vacant space and new supply will intensify the competition in 2H/2025. However, the operational innovations and improved amenities in the office buildings are considered the key to breaking through the downward cycle."

"Beijing’s en-bloc investment market remained stable in H1/2025, with transaction volumes exceeding last year. Apart from end-users, the market focused on cash flow condition. Developers sell their projects to reclaim funds, lower the leverage and improve liquidity, while institutional investors prefer well-managed assets with stable cash flow. "