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Shenzhen MarketBeat Reports

Xiaoduan Zhang • 28/06/2024
Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.

Q2 2024 Highlights

Office: New Grade A office supply paused in Q2, with occupiers remaining cautious.

Retail: Demand growth and inbound tourism brought renewed confidence to the retail market in Q2.

Capital Markets: Office and residential property transactions in the Shenzhen investment market continued to slow in Q2.

Learn more by clicking our most recent Shenzhen MarketBeat reports below.

CURRENT MARKETBEATS

Office Buildings CBD
Shenzhen Office MarketBeat

Total Grade A stock was unchanged at 8.3 million sq m in Q2. Occupiers were prudent in the quarter, with relocations and renewals the primary leasing activities, led by the finance, professional services and TMT sectors. Overall vacancy climbed to 27.2%. Landlords offered incentives in a tenant’s market, citywide monthly average rents slipping a further 5.3% in H1 2024 to RMB176.6 per sq m.
 

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Shopping Retail
Shenzhen Retail MarketBeat

No new prime projects entered in Q2. The market sustained momentum in the period, boosted by inbound tourism. The general retail sector led new store openings, notably fashion, 3C and smart appliance brands, with sales indicating consumption upgrading. F&B operators also expanded. Overall vacancy again dropped q-o-q to record 8.4%. The citywide monthly rental level grew 0.7% q-o-q to RMB812.1 per sq m.
 

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Warehouse Internal Rack
Shenzhen Capital Markets MarketBeat

Office and residential property transactions in the Shenzhen investment market have slowed recently due to declining asset prices. The market continued the downturn in Q2, with investment volume reaching just RMB2.78 billion (US$380 million) for the quarter, down 61.6% y-o-y, and RMB5.66 billion (US$780 million) for the 1H 2024 period, down 70% y-o-y and the weakest 1H performance since 2016. The office sector remained the mainstay of transactions in 1H, with all deals for owner-occupation.
 

Click here to download the report

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