At the end of Q2 2025, the total Grade A office inventory in the core markets of the 20 major cities in Greater China we track totaled 72.1 million sq m. In the meantime, total premium core city office net absorption across the Greater China market for the H1 2025 period reached 0.76 million, a 5.5% y-o-y increase.
The Greater China 20 major cities average vacancy rate rose 1.9 percentage points y-o-y to 24.9%. Of the six major cities in the region — comprising the tier-1 city group, Hong Kong, and Taipei — Taipei registered the lowest vacancy rate at 7.9%. As for the tier-2 city group, Qingdao recorded the lowest vacancy rate at 24.7%.
Through the H1 2025 period, total premium core city office new supply expanded 8.3% y-o-y to 1.7 million sq m. Ahead, the volume of quality office supply in many cities in Greater China is expected to enter a peak period in H2 2025, with the tier-2 city group accounting for 64.1%.
Overall Grade A office space demand has not yet recovered, with rental levels and vacancy rates remaining under pressure in 2024 and through H1 2025. However, we anticipate that accumulating positive economic factors, including the state of the general economy, government policy, and individual city initiatives, may provide a lift to office demand ahead.
This report focuses on the Grade A office market in the Greater China region and provides an understanding of:
- The office supply/demand trends experienced in the region over the course of the past one and a half years
- An outlook on office supply/demand in Greater China for the year ahead and beyond
- Finally, an insight and outlook of the office supply/demand trends for each major city in the Greater China region
