Shenzhen's real estate market has shown signs of 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%.
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 homes were sold in Q1, an impressive 82.1% increase from the same period last year.
March alone saw 4,161 units sold, a 47.0% 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.
According to statistics disclosed by Savills on April 10, the city’s sold residential properties saw a year-on-year increase of 61.3% in floor space 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 firms continued to expand. Stable rental demand was also observed in sectors like finance, professional services, and consumer services.
With 14 new projects expected to enter the market in 2025, adding a total supply area of 893,000 sqm, the city’s total grade-A office stock is projected to grow by 7.9% by the year’s end.
A report highlighted that the internet sector continued to drive 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 10,000 sqm of office space leased. However, 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.