2021-07-29-第一太平戴维斯-深圳写字楼_2021年第一季度_2页_776kb

Summary of Shenzhen Office Market Report (Q2 2021)

In 2021's second quarter, Shenzhen's office market showed improvement as economic conditions recovered from the pandemic. New supply remained limited, with only the Yitian Tower delivering 35,000 square meters of leasable space, which helped alleviate supply pressures after a significant drop in new deliveries. This contributed to a net absorption of 16.4 square meters, aligning with the historical average, and reduced vacancy rates to 26.4 percent from their peak levels.

Demand sustained growth, supported by economic recovery and high GDP growth in Shenzhen, with transactions across industries. Notably, tenants in sectors like TMT and finance drove leasing activities, including large deals such as a company purchasing office space in Futian for its headquarters. Average rents decreased slightly by 0.2 percent month-over-month but remained relatively stable year-over-year, rising from pandemic lows.

Looking ahead, the market faces risks due to expected new supply additions in Q3, which could worsen vacancy rates and push rents down further. Continued monitoring of demand and supply dynamics will be crucial to address potential over-supply issues.