Shanghai Figures Q1 2023

April 20, 2023

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Leasing and investment remain sluggish but outlook brightens as economic rebound begins



Three new office buildings providing a total of 156,161 sq. m. of space were completed in Q1 2023. The lingering impact of anti-pandemic measures weighed on net absorption over the quarter, which fell 23% q-o-q to 38,399 sq. m.. Demand was driven by the business service, finance, and consumer product manufacturing sectors. Overall vacancy increased by 0.5 pps to 18.0%.


Although no new shopping malls were completed this quarter, one refurbished project resumed operations. Citywide vacancy decreased 0.3 pps to 7.7%, with net absorption logging 33,871 sq. m.. Average G/F shopping mall rents were flat, bringing an end to three consecutive quarters of decline. Demand continued to pick up, with retailers in the F&B, fashion, toys and grocery sectors especially active.


Five projects providing a combined 584,361 sq. m. of space came on stream in Q1 2023. New stock was primarily located in Qingpu, Jinshan and Songjiang, and pushed up vacancy to 14%. 3PLs continued to dominate leasing demand.

Business Park

Two new projects providing around 187,000 sq. m. of new space were launched this quarter. Take-up totaled 52,049 sq. m. and was underpinned by the TMT, pharmaceutical & life science, and consumer product sectors.


A total of 21 investment transactions worth a combined RMB 18.69 billion were completed in Q1 2023, a decline of 25.4% q-o-q. Offices remained the most popular asset class. Investment-oriented deals continued to dominate, with institutional investors accounting for 80% of total transaction volume.