china briefings

"Adjustments to several large-format leisure and entertainment units pushed market vacancy higher in Q2/2026."

"Guangzhou's large consumer market and solid economic fundamentals continue to support retail leasing demand. While F&B remains the primary driver of expansion, upcoming landmark projects should help attract a broader range of premium retail brands over the coming years."

"Retail supply is expected to remain limited in H2/2026, supporting further market absorption and a continued decline in the vacancy rate. Existing shopping centres will continue to focus on refurbishment, tenant mix upgrades and differentiated retail experiences to attract consumers."

"The residential leasing market is becoming increasingly segmented. High-end projects continue to demonstrate resilience, while operators in the mass market face intensifying competition from affordable rental housing."

"As REITs improve pricing transparency and exit options, investors are placing greater emphasis on resilient income, operational quality and long-term asset management."

"As leasing pressure persists, landlords continue to explore new operating models, while more developers are looking to sell previously self-held leasing assets."

"Citywide net absorption improved significantly in the first half of 2026, although leasing demand remained heavily concentrated in secondary submarkets. By contrast, prime locations such as Zhujiang New Town have recorded negative net absorption for four consecutive quarters, and core office assets are likely to remain under pressure as new supply continues to enter the market."

"As pricing adjusts and ownership transitions from financial investors to long-term owners, new investment opportunities are emerging through repositioning, urban regeneration and active asset management."

"Demand continued to improve, supported by technology sector expansion and workplace consolidation. However, it remained insufficient to absorb new supply, leaving market conditions firmly in tenants' favour."

"Beijing's en-bloc investment market continued to recover in H1/2026 as investor confidence gradually improved. More realistic pricing and improving market conditions are creating opportunities for investors to acquire quality commercial assets, supporting a broader recovery in investment activity."