Shanghai Commercial Property Deals Slump to 11-Year Low by Value
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The value of Shanghai’s major commercial real estate transactions fell to an 11-year low in 2025 as sliding rents and high vacancy rates weighed despite strong demand for core assets.
A total of 89 high-profile transactions were made in the city last year, which were valued at about 48.7 billion yuan ($7 billion), down 15% year-on-year and marking the second consecutive year of drop, according to a recent report by property consultancy Jones Lang LaSalle Inc. (JLL).
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- Shanghai's commercial real estate transaction value dropped to an 11-year low in 2025, totaling 48.7 billion yuan, down 15% year-on-year.
- Office assets led transactions (52%), but vacancy rates rose to 24.3% and CBD rents fell 12.1% due to oversupply.
- Policy support for real estate investment trusts began in late 2025; financial firms drove 23% of office leasing, while logistics property absorption surged but vacancy remained high.
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Who’s Who
- Jones Lang LaSalle Inc.
- Jones Lang LaSalle Inc. (JLL) is a property consultancy. Their recent report indicated that the value of major commercial real estate transactions in Shanghai fell to an 11-year low in 2025, totaling 48.7 billion yuan and representing a 15% year-on-year decrease. Sun Ling, Head of Investment and Capital Markets in East China at JLL, and Jiang Su, a Senior Director at JLL, provided commentary within the report.
- China Post Life Insurance Co. Ltd.
- China Post Life Insurance Co. Ltd. (中邮人寿保险股份有限公司) led the acquisition of an office building project in Shanghai's Jingan district. This eye-catching transaction was valued at 10.9 billion yuan, indicating the company's significant investment in the commercial real estate market despite a broader slowdown.
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What Happened When
- 2025：
- The value of Shanghai’s major commercial real estate transactions fell to an 11-year low.
- 2025：
- A total of 89 high-profile commercial real estate transactions were made in Shanghai, valued at about 48.7 billion yuan, down 15% year-on-year.
- December 2025：
- The China Securities Regulatory Commission (CSRC) launched a new pilot program for commercial real estate investment trusts.
- Fourth quarter of 2025：
- Net absorption of Grade-A office space in Shanghai rose 13.4% year-on-year.
- Fourth quarter of 2025：
- The rate of decline in rents in Shanghai’s Central Business District slowed compared to the annual average.
- Fourth quarter of 2025：
- Net absorption of retail properties surged to 273,000 square meters, more than half the annual total.
- Final three months of 2025：
- Rents for logistics properties in Shanghai fell 6.5% quarter-on-quarter.
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