We expect annual average supply of over 2 million sq metres (21.5 million sq feet) in 2021 and 2022 to intensify competition in the leasing market. As a result, rents should remain under pressure before a gradual rebound starts in late 2023. Also, as DBD buildings have lower rents, the rising proportion of buildings located in the DBD will likely lead to slower overall rental growth.
Dear Valued Client，
Shanghai’s office leasing market saw a substantial recovery after COVID-19, as H2 2020 net absorption was 250,700 sq metres (2.7 million sq feet), exceeding that of H2 2019 by 46%. We foresee rents should remain under pressure before a gradual rebound starts in late 2023. Also, as DBD buildings have lower rents, the rising proportion of buildings located in the DBD will likely lead to slower overall rental growth.
Shanghai’s office leasing market saw a substantial recovery after COVID-19, as H2 2020 net absorption was 250,700 sq metres (2.7 million sq feet), exceeding that of H2 2019 by 46%. We foresee rents should remain under pressure before a gradual rebound starts in late 2023. Also, as DBD buildings have lower rents, the rising proportion of buildings located in the DBD will likely lead to slower overall rental growth.
