China Figures Q2 2024

OFFICE

New office supply totalled 550,000 sq. m. in Q2 2024, a decline of 58% q-o-q and 69% y-o-y. Net absorption reached 620,000 sq. m. (up 11% q-o-q but down 17% y-o-y) for the quarter. H1 2024 net absorption totalled 1.17 million sq. m., up 7% y-o-y but a level just 43% of the five-year average logged during the same period of 2015-2019. Delays to new supply ensured vacancy fell by 0.1 pps q-o-q to 24.7%. Nationwide average rents dipped by a further 1.4% q-o-q.


RETAIL

Nationwide new shopping mall supply registered 1.73 million sq. m. in Q2 2024. New supply fell 20% y-o-y to 2.14 million sq. m. in H1 2024. Net absorption registered growth of 238% q-o-q and 76% y-o-y in Q2 2024 and totalled 2.18 million sq. m. for the H1 2024 period, 8% higher than the level observed during the corresponding period in the years between 2015 to 2019.


LOGISTICS

Nationwide net absorption reached 2.56 million sq. m. in H1 2024, a decline of 4% y-o-y. Cross-border e-commerce platforms continued to expand in South China during the quarter and accounted for 45% of new leases signed during the period. New logistics supply reached 3.4 million sq. m. for H1 2024, a decline of 43% y-o-y. Occupiers' bargaining power increased during the quarter under continued destocking pressure, ensuring the national rental index fell by 1.7% q-o-q.


INVESTMENT

Commercial real estate investment volume totalled RMB 37.7 billion in Q2 2024, representing declines of 32% q-o-q and 16% y-o-y. Half-year transaction volume reached RMB 92.8 billion, down by 11% y-o-y and marking the lowest total for the first six months of the year since 2017.