Demand improves and the financial sector becomes more active, vacancy declines
In Q2 2022, Shenzhen’s pent-up demand from previous social distancing regulations and the Spring Festival (Chinese New Year in February 2022) came to the market. However, due to the uncertainty surrounding Covid and the macroeconomic environment, confidence is lacking throughout the office leasing market, and Q2 activity was low YOY. Rents have been steady since last year, and the vacancy rate declined slightly QOQ.
With the high supply in Shenzhen’s market, we continue to recommend landlords attract high-quality customers with flexible lease terms. We also recommend landlords offer refined operations and advanced experience in real estate management with the latest technology.
With the current supply, many high-quality properties offer favorable leasing conditions. We recommend tenants use this time to reserve space for future development.