Shanghai Figures Q4 2021

January 20, 2022

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Office and business park net absorption reach new high;

investment expected to rebound in 2022



Four new office projects providing a total of 223,261 sq. m. were completed this quarter. Strong demand from the finance sector, especially private equity firms and domestic funds, pushed up quarterly net absorption above the historical average. Core CBD rental growth accelerated amid limited availability.



New supply stimulated a wave of upgrading moves in Q4 2021. Strong leasing activity drove up overall net absorption to 560,940 sq. m.. F&B dominated demand, with steady expansion and upgrading in the coffee and beverage category underpinned by capital investment.



A total of 458,738 sq. m. of new logistics supply was added this quarter. 3PL demand remained strong throughout the year, closely followed by e-commerce and couriers, leading to steady rental growth.



Four new projects were delivered in Pujiang and Zhangjiang in Q4 2021. Net take-up reached around 256,696 sq. m., while annual absorption exceeded 1 million sq. m.. Solid demand from pharmaceutical and electronic products pushed up rents to their highest levels in three years.



A total of 31 deals worth a combined total of RMB 35.59 billion were closed this quarter. Offices remained the most sought-after property type, with three life science business park offices transacted during the period. Strong deal flow for alternative assets was also witnessed. Domestic investors dominated purchasing activity, with many buyers displaying a higher risk appetite.