China Figures Q4 2023

OFFICE

New nationwide office supply fell to 1.23 million sq. m. in Q4 2023, a decline of 43% q-o-q and 21% y-o-y. Office net absorption grew by 35% q-o-q and 91% y-o-y to just under 1 million sq. m. Relocation and expansion volume both hit two-year highs, continuing the upward momentum observed in recent quarters. Nationwide office average vacancy reached 24.5% while average rents dipped by a further 1.1% q-o-q under pressure from new supply.


RETAIL

New supply increased by 149% to 2.55 million sq. m. Net absorption reached 2.6 million sq. m., marking a 153% q-o-q rise from Q3 2023 and a remarkable 210% increase from the low base of the same period last year. Benefiting from a sustained recovery in demand, nationwide vacancy decreased for a second consecutive quarter, dropping by 0.4 ppt q-o-q to 8.7%. Average nationwide ground floor shopping mall rents remained stable, with slight growth observed in cities in east and central China.


LOGISTICS

National warehouse net absorption reached 1.97 million sq. m. this quarter and totaled 7.22 million sq. m. for the full-year, an increase of 44% y-o-y and slightly below 2021’s record high. Cross-border e-commerce players drove demand in 2023. Full-year new warehouse supply reached a record high 12 million sq. m. With landlords looking to fill vacancy, the national rental index fell 1.1% q-o-q and 2.8% y-o-y.


INVESTMENT

Commercial real estate investment volume totalled RMB 48.3 billion in Q4 2023, marking declines of 15% q-o-q and 35% y-o-y. Activity was dominated by purchases by corporations and developers. Institutions and property funds remained cautious, accounting for just 15% of overall investment during the quarter. Full year transaction volume registered RMB 206.3 billion, a fall of 13% y-o-y.