China Figures Q2 2025

OFFICE

New stock totaled 1.13 million sq. m. in Q2 2025, a rise of 49% q-o-q and 105% y-o-y. Net absorption improved by 11% q-o-q and 54% y-o-y to 610,000 sq. m., led by tech driven cities such as Beijing and Shenzhen. Average vacancy rose by 0.3 percentage points q-o-q to 23.8%. Landlords; further rental cuts drove down average rents by 2.7% q-o-q.

RETAIL

Retail property market activity rebounded in Q2 2025, with new completions and net absorption reaching 1.18 million sq. m. and 860,000 sq. m., respectively. Due to the increasing number of shopping mall renovations, vacancy edged up 0.3 percentage points q-o-q to 7.4%. Average rents declined by 0.2% q-o-q, with the rate of decrease moderating over the quarter.

LOGISTICS

Nationwide net absorption reached 2.7 million sq. m.,H1 2025 net absorption totalled 5.1 million sq. m., a historical high. New supply declined to 1.5 million sq. m. in Q2 2025. Vacancy dropped to 19.3%. Landlords’ “price for volume” strategy ensured the nationwide rental decline widened to 3.6% q-o-q in Q2 2025.

INVESTMENT

Commercial real estate investment volume totalled RMB 65.7 billion in Q2 2025, a decline of 1% q-o-q but an increase of 42% y-o-y. While investor sentiment remained cautious, institutional investors’ strong appetite for consumption and living-related assets pushed up transaction volumes of retail properties and rental housing to new quarterly highs.