Office net absorption totaled 250,000 sq.m. up by 15.8% q-o-q, most of which occurred in emerging submarkets. Qiantan, HQ CBD, Daning and The Bund accounted for 78% of total transactions.  Office rental decline narrowed to -0.3% q-o-q after sizable adjustments in previous quarters. Demand was led by TMT and consumer product firms.


The gradual rebound of leasing demand boosted net absorption to 89,373 sq. m., ensuring annual net take-up ended the year in positive territory. Vacancy fell to 7.3%, similar to pre-pandemic levels. New supply totalled 58,000 sq.m.. Demand was dominated by F&B retailers in both prime and secondary areas.


Logistics demand continued to recover on the back of solid economic growth, higher consumption and rising foreign trade. Overall rents registered steady gains, rising by 0.4% q-o-q.  Robust demand from 3PLs, electronics manufacturers and pharmaceuticals firms supported strong net absorption in Lingang, Jinshan and PVG.


Three new projects delivered. TMT remained strong especially new media and gaming companies. Vacancy rose by 0.8 pps q-o-q to 17.9% while the rentals remain largely unchanged.


En-bloc transaction volume rose 124.8% q-o-q to RMB 24.02 billion in Q4, underpinned by strong purchasing activity from end-users, which accounted for more than half of transaction volume during the period. Investment-led deals represented around RMB 10.8 billion of transaction volume as China’s swift economic recovery boosted investor confidence.