Zhang Yu

JeniZhang13@163.com

SHENZHEN’S office market posted a record-breaking performance this year, as evidenced by high net absorption and a low vacancy rate, according to a report released yesterday by real estate consultancy Savills.

Shenzhen’s grade-A office rental market rebounded strongly in 2021, with annual net absorption in the office sector reaching 1.176 million square meters, hitting 1 million square meters for the first time to set a new high, Savills said.

Data from the company showed that the new supply of grade-A office space in Shenzhen reached 982,000 square meters throughout 2021. Three projects were completed in the fourth quarter, bringing a total of 435,000 square meters of office space to the market.

The city’s total office stock increased by 11.8 percent year on year to 9.288 million square meters as of the end of the year.

Key players in the TMT (technology, media and telecommunications) industry continued their strong office expansion from the previous quarter in the fourth quarter, while demand for office leases from the finance, retail and trade industries remained active, according to the report.

The average vacancy rate of grade-A offices in Shenzhen has been declining for four consecutive quarters since the beginning of the year, the company said. The vacancy rate had dropped to 22.7 percent by the end of the year, down 1.2 percentage points month on month and 5.2 percentage points year on year, the lowest level in two years.

Savills said that 18 new projects are expected to enter the Shenzhen market in 2022, bringing in approximately 1.2 million square meters of new office space and driving up the vacancy rate. However, this increase is believed to be temporary, as the Shenzhen market continues to grow.