The current state of office vacancies in major Chinese cities surpasses the levels observed during the zero-COVID period.

The current office vacancy rates in China have surpassed the levels observed during the country's stringent zero-COVID measures, further exacerbating the challenges faced by the nation's ailing property industry.

There are now available positions in prestigious Grade establishments. According to a survey by Savills, a British real estate services company, there was an increase in office properties in China's major cities, namely Beijing, Shanghai, Guangzhou, and Shenzhen, during the second quarter of the year.

The city of Shenzhen experienced a significant increase in job vacancies, with a growth of 4.1 percentage points compared to the previous year, resulting in a vacancy rate of 27%. This statistic represents the highest vacancy rate among the four cities under consideration. The office rental rate in Guangzhou, which was previously regarded as one of the most robust markets for office space in China, had a significant increase of 5.9 percentage points, reaching a 10-year peak of 20.8%.

The increase in available rental properties has resulted in a decrease in rental prices. During the period of April-June, Grade A office spaces in Beijing were leased at a monthly rate of 312.5 yuan ($45) per square metre. This figure reflects a decrease of 7.4% compared to the corresponding period in the previous year. The rental prices in Guangzhou and Shenzhen also experienced a decline.

The tendencies identified by Savills are ascribed to uncertainty surrounding the economic situation, which allude to potential underlying structural issues.