Core Insights - Despite significant supply pressure, the Shenzhen office market showed notable highlights in 2025 with a return of over one million square meters of supply for the first time in three years [1] - The demand from technology companies for upgrades and expansions significantly contributed to large transactions and supported net absorption growth [1] - The annual net absorption reached 664,000 square meters, marking a new high since 2021 and exceeding the five-year average by 16.9% [1] Supply and Demand - In 2025, 21 new projects were launched, contributing a total supply area of 1.182 million square meters [1] - The average vacancy rate for Grade A office buildings in Shenzhen was recorded at 31.4%, with a slight decrease of 0.2 percentage points [1] - Rental index decreased by 1.9%, with average rent falling to 132.6 yuan per square meter per month [1] Future Outlook - The overall supply scale of Grade A office buildings in Shenzhen is expected to remain substantial in 2026, potentially surpassing one million square meters [2] - The development of technology, high-end, and high-tech manufacturing industries is anticipated to positively impact office demand, with expectations for continued growth [2] - The Qianhai area is transitioning from "functional aggregation" to "capability leap," with new breakthroughs expected in cross-border data flow, green finance innovation, and high-end professional services [2]

Group 1 - The Hong Kong retail market faced significant downward pressure in the first four months of the year, with total retail sales estimated at HKD 28.9 billion, a year-on-year decline of 5.6% [1] - Despite the challenges, the retail sector is expected to remain stable for the year, although there will be increased pressure from rental adjustments and price changes [1] - The retail landscape in Hong Kong is shifting from traditional shopping to a more diversified experiential approach, necessitating timely adjustments in business strategies [1] Group 2 - The investment property market recorded a transaction volume of HKD 14 billion in the first five months, remaining flat compared to the same period last year, but the number of transactions decreased by 7% [1] - Office properties accounted for the largest share of market transactions at 52%, driven by strong demand for discounted and bank-owned properties [1] - Hotel and serviced apartment transactions followed, making up 20% of the market with a significant year-on-year increase of 430%, attributed to government policies aimed at attracting non-local university students [2] Group 3 - Retail properties faced challenges due to weak local consumption and high labor costs, comprising only 9% of total transactions, while development land accounted for 4% [2] - Looking ahead to the second half of 2025, the market focus is expected to shift towards student accommodation and education-related assets, driven by government initiatives [2] - The Hong Kong government is committed to supporting local universities in attracting more international students, which is anticipated to further stimulate demand for student accommodation [2]