Asia Pacific Office Outlook 2024

GUANGZHOU

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 The entry of new office buildings in emerging business districts will lead to further competition in the market. The city's average rents are expected to continue to fall. It is expected that by 2024, the city's average rents will fall to less than RMB150 per sqm per month.  As the supply recedes and the office atmosphere in emerging business districts matures, landlords may readjust their rental expectations. The rate of decline in citywide average rents is expected to narrow gradually. The citywide average rents are expected to stabilize in 2027.

 The Guangzhou office market is expected to see 3.0 million sqm of new office space in the 2023 to 2027 period.  The citywide stock is  A peak in supply is expected in 2025, with over 790,000 sqm of new office space scheduled to enter the market. After 2025, the average annual new supply is expected to decline to less than 50,000 sqm. expected to reach 9.6 million sqm in 2027.

 The continued entry of new supply into the market will influence the city's vacancy rate to remain high.  The overall net absorption is expected to reach a peak in 2025 as a large amount of new supply will have a stimulating effect on demand.  The increase in the city's vacancy rate is expected to stabilize from 2024

 Since the beginning of 2023, the Guangzhou government has issued several policies to support the recovery and development of the real economy. The continuous improvement in future expectations will be favorable to business operations and will drive the release of demand in the office market.

onwards as the macroeconomic environment gradually recovers.