Group 1 - The core viewpoint of the reports indicates that the Grade A office market in Greater China remains full of opportunities for tenants, with vacancy rates and rents expected to stay at favorable levels as the economy gradually recovers [1] - By the second quarter of 2025, the total stock of Grade A office space in 20 major cities in Greater China is projected to reach approximately 72.13 million square meters, with a net absorption of about 764,000 square meters in the first half of 2025, representing a year-on-year increase of 5.5% [1] - In major cities, Taipei's core area is expected to have a low vacancy rate of around 7.9% by the second quarter of 2025, while in second-tier cities, Qingdao is projected to have the lowest vacancy rate at 24.7% [1] Group 2 - The anticipated new supply of office space in Hong Kong for the first half of 2024-2025 is over 194,000 square meters, with the core and non-core areas each accounting for half [2] - The average new leasing area recorded in the first half of 2024-2025 is approximately 84,900 square meters per quarter, which is 19% higher than the average from 2020-2023 [2] - Despite signs of recovery in Hong Kong's IPO market, the substantial future supply and high vacancy rates may exert pressure on rental performance, with an expected overall decline in office rents of about 7-9% for the entire year of 2025 [2]

Core Insights - The report indicates a slight recovery in Beijing's Grade A office market, with a net absorption of 12,960 square meters in Q2 2025, reversing the negative absorption trend from the previous quarter [1][2] - The average vacancy rate decreased by 0.2 percentage points to 18.4%, stabilizing at levels seen in Q4 2024 [2][3] - Average rental prices fell by 1.6% to 233.1 yuan per square meter per month, with a year-over-year decline of 7.4% compared to Q4 2024 [1][2] Market Supply and Demand - Only one new project, the China Overseas Financial Center Tower 1, was completed in H1 2025, with no new projects expected to be delivered in the second half of the year [2] - The high-tech sector led leasing transactions, accounting for 34% of total leased area, followed by finance and professional services at 22% and 16%, respectively [2] Rental Trends - Financial Street's average rent fell below 400 yuan, decreasing by 6.1% to 389.2 yuan per square meter, reflecting pressure from state-owned enterprises relocating to self-owned offices [3] - The Central Business District (CBD) saw a 2.8% decline in average rent to 255.4 yuan per square meter, with a vacancy rate of 15.1% [3] - The Zhongguancun area experienced a significant drop in vacancy rate by 3.2 percentage points to 12.8%, driven by demand from high-tech companies [3] Future Outlook - A supply peak is anticipated in 2026, with 757,000 square meters of office space expected to be delivered [4] - Companies are expected to prioritize flexible lease terms in response to market uncertainties, with landlords likely to offer incentives such as customized renovations and improved service quality [4]

Group 1 - The high-tech industry is the main driver of leasing transactions in the first half of the year, accounting for 34% of the total transaction area [6] - In the second quarter, the average vacancy rate in Beijing's Grade A office market was 18.4%, a slight decrease of 0.2 percentage points from the previous quarter, with a net absorption of 12,960 square meters [1][6] - The average rent for Grade A offices in Beijing decreased by 1.6% to RMB 233.1 per square meter per month, with a year-on-year decline of 7.4% compared to Q4 2024 [1][6] Group 2 - The supply peak year is expected to be 2026, with an anticipated 757,000 square meters of office space, including 409,000 square meters in the central business district [9] - Domestic enterprises are maintaining a cautious attitude towards long-term investments due to global economic uncertainties, while consumption-boosting policies have positively impacted production and market demand [9] - The market is expected to tilt further towards tenants, with landlords adopting flexible lease terms and enhanced service quality to attract tenants [9]