SZ's real estate market continues to warm up in Q1

Shenzhen's real estate market has shown signs of a steady recovery in the first quarter (Q1) of 2025, according to the latest data released by the Shenzhen Municipal Housing and Construction Bureau.

The city witnessed a significant increase in the transaction volume of both newly-built and pre-owned residential properties, exceeding 26,000 units, marking a year-on-year increase of 67.7%.

A housing estate in Nanshan District's high-tech park area. The city’s real estate market showed signs of steady recovery in the first quarter of 2025, according to official data. Wei Jie

The market’s momentum, which started strong in January, continued to gain traction throughout the quarter, with March emerging as a particularly vibrant month. Online signing transaction data reveal that 11,735 new residential properties were sold in Q1, an impressive 82.1% increase from the same period last year. 

March alone saw 4,161 units sold, a 47% year-on-year increase and a 67.5% rise from the previous month.

Savills, a global leader in real estate services, attributed the market’s strong performance to a series of preferential policies. 

A Savills Shenzhen representative presents the firm’s Q1 2025 analysis of the local property market during a press conference held yesterday. Courtesy of Savills Shenzhen

According to statistics disclosed by Savills yesterday, the floor space of sold residential properties in the city saw a substantial year-on-year increase of 61.3% in Q1, the second highest in the past three years.

In the Grade-A office sector, the IT industry remained the dominant demand driver. Office demand from new quality productive forces-related enterprises continued to expand. Stable rental demand was also observed in sectors like finance, professional services, and consumer services, according to Savills. 

With 14 new projects expected to enter the market in 2025, adding a total supply area of 893,000 square meters, the city’s total Grade-A office stock is projected to grow by 7.9% by the year’s end, it said.

A report by Jones Lang LaSalle (JLL) highlighted the internet sector’s continued leadership in driving demand, accounting for about a quarter of the transaction area in Q1. 

Notably, cross-border e-commerce and its supporting service providers performed exceptionally well, with transactions leasing nearly 10,000 square meters of office space, according to JLL. However, the company also cautioned that the city’s office vacancy rate might remain high due to new supply, and the average rent of the city’s office market could continue its downward trend.