ASIA PACIFIC OUTLOOK 2025

SHENZHEN

DEMAND & VACANCY

Cumulative office market net absorption is forecast to drop to 140,000 sq m in 2024, less than half of that in 2023, mostly led by the delayed entry of new projects and soft demand. The estimated year end citywide vacancy rate will also be affected by these factors, slightly rising to 26.3%, up 0.2 percentage points y-o-y. China's economic stimulus measures may aid in the resurgence of office leasing demand in 2025. Furthermore, upon the completion of headquarters buildings, increased owner-occupation will elevate net absorption. Despite this, the vacancy rate is anticipated to continue its upward trajectory in the forthcoming years due to an estimated substantial increase in supply.

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%

600,000

FORECAST

500,000

400,000

300,000

200,000

100,000

0.0% 5.0%

0

2022 2023 2024F 2025F 2026F 2027F 2028F 2029F

NET ABSORPTION (SQM) AND VACANCY RATE (%)

Net Absorption

Vacancy Rate

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025

Source: Cushman & Wakefield