Market Overview - The overall expectation for the office market is improving due to gradual demand recovery, with first-tier cities recording a net absorption of 456,000 square meters, accounting for 61% of the national total[3]. - Shenzhen's net absorption in Q4 reached 213,000 square meters, primarily driven by leasing rather than self-use demand[3]. - The average effective rent for the overall market decreased by 6.7% year-on-year, marking the largest decline in nearly a decade[13]. Rental Trends - The average rent for Grade A office space in Beijing fell by 3.3% year-on-year to 80 RMB/sqm/month, with a significant price competition emerging in the market[11]. - The rental market is expected to continue its downward trend, with a projected decline of 7.2% for Grade A office rents in 2024[60]. - The average vacancy rate in major cities decreased by 1.3 percentage points quarter-on-quarter to 26.6%, despite rising vacancy rates in other cities[14]. Sector Performance - The financial and professional services sectors remain resilient, driving demand in the office leasing market, particularly in cities like Nanjing and Tianjin[5]. - The TMT (Technology, Media, and Telecommunications) sector contributed 30% to the total leasing volume in the Grade A office market[58]. - In Tianjin, the Grade A office market recorded a net absorption of approximately 36,000 square meters, exceeding the same period in 2022 by about 38%[29]. Future Outlook - The market is expected to face challenges from excess supply and cautious tenant expectations, with a slow recovery anticipated in 2024[34]. - Significant new supply is projected for 2024, with over 500,000 square meters expected in Chengdu, primarily focused on the Tianfu New Area[127]. - The overall market sentiment remains cautious, with landlords adjusting rental strategies to attract tenants amid competitive pressures[113].
大中华区2023年四季度物业摘要：律回春渐 与时偕行
2024-02-28 16:00