At the end of Q4 2025, Grade A office inventory in 21 major cities in Greater China we track totaled 99.2 million sq m. For the full year 2025, total new office supply in the major cities rose 8.4% y-o-y to 4.6 million sq m. Grade A office market space new supply in Greater China is expected to peak in 2026.
Macroeconomic pressures have weighed on the growth of office demand. Total office net absorption across key cities for 2025 reached 2.3 million sq m, a marginal increase from the prior year. Driven by large-scale new supply and relatively weak demand, the overall vacancy rate of the tracked major Greater China cities rose 1.0 percentage points y-o-y to 25.4%.
Taipei registered the lowest vacancy rate at 7.9% among all tracked cities. As for the tier-1 city group, only Beijing posted a vacancy rate below 20%, while Zhengzhou logged the lowest vacancy rate in the tier-2 city group at 23.5%. Office rents remained under pressure, with the average Grade A office rental level in all major cities declining y-o-y, with the exception of Taipei.
Large-scale future supply, combined with global uncertainties and structural pressures on the domestic economy, will further exacerbate broad-based market headwinds. On the other hand, accelerated development of new quality productive forces and ongoing supportive policies will drive gradual leasing demand growth in relevant sectors.
