Demand returned to pre-Covid levels, The vacancy rate remained stable, Rents are slowly starting to rise.
Dear Valued Client,
In Q1 2022, demand returned to pre-Covid levels, with net absorption of 102,000 sq meters (109.8 million sq feet). The market saw several large leasing transactions from financial companies. The expansion of China’s top internet companies slowed due to updated policy guidance1. The vacancy rate remained stable, slightly decreasing to 14.9% despite the new supply, having declined for five consecutive quarters and returning to a pre-Covid level. Rents slightly increased to RMB342 (USD53.7) psm per month.
Landlords With the changing demand, we recommend landlords pay attention to the leasing demand of high-tech companies and follow internet companies rebalancing their footprint. Tenants Since Q1 2022, especially in the CBD and Lize, the room from negotiation in rents has started to shrink. The overall market has entered an absorption period. We recommend tenants seize the opportunity to lease at affordable rents while making office footprint adjustments.