China Figures Q3 2024

OFFICE

Around 1.08 million sq. m. of new office space came on stream in Q3 2024, marking an increase of 96% q-o-q but a decrease of 50% y-o-y. Net absorption declined by 5% q-o-q and 20% y-o-y to 580,000 sq. m. Weaker leasing momentum saw nationwide office average vacancy edge up 0.1 pps. to 24.8%. The ationwide average rental index declined by a further 1.8% q-o-q.


RETAIL

Some 90% of new malls added this quarter came on stream with an occupancy rate of 80% thanks to landlords’ commencing pre-leasing at an earlier date. Nationwide net absorption rose by 42% q-o-q and 29% y-o-y to 2.24 million sq. m., 34% higher than the third quarter average recorded during 2015 and 2019. Overall vacancy decreased 0.2 pps. q-o-q and 1.4 pps. y-o-y to 7.7%.


LOGISTICS

National warehouse net absorption totaled 1.7 million sq. m. in Q3 2024, up 52% q-o-q. Cross-border e-commerce platforms accounted for 33% of new leases.  Manufacturing tenants remained active, displaying stronger upgrading demand. Nationwide new logistics supply amounted to 1.62 million sq. m. in Q3 2024, down 24% q-o-q and 44% y-o-y. Vacancy declined 0.5 pps. q-o-q to 21.5%, while the rental decline accelerated as destocking pressure intensified.


INVESTMENT

Commercial real estate investment volume rallied by 17% q-o-q to RMB 54.0 billion in Q3 2024. While this figure was largely on par with the average level of the same quarter in the previous five years, it marked a decline of 11% y-o-y due to a high-base effect. Year-to-date investment volume registered RMB 164.6 billion, down by 0.5% y-o-y.