"In 1H/2025, the Chengdu Grade A office market saw weak demand and negative net absorption. State-owned enterprises leased out previously self-occupied buildings, diversifying supply. Weak demand and high supply pushed up vacancy rates and lowered rental levels."

"In Q1/2025, the market supply has grown significantly while the demand picked up. The citywide average rents continued to decline. With over 200,000 sqm expected in the pipeline in Q2/2025, the vacancy rate remain under pressure, making it difficult to reverse the rents’ declining trend in the near term."

"In 2024, landlords generally adopted rental concession strategies as the supply side was at low levels and the demand side was under significant pressure. It is anticipated that supply will pick up in 2025, and demand is unlikely to improve substantially in the near future."

"In Q3/2024, the first new project of the year, Lanrun Ruichen Centre, brought nearly 30,000 sq m of new supply to the market. Leasing demand remained weak, but total surrender space declined significantly. In Q4/2024, approximately 100,000 sq m of new supply is expected in Tianfu New District, intensifying competition in the area."

"Chengdu is expected to see 200,000 sqm of Grade A office supply in H2/2024, adding to the over 4 million sqm of total stock at the time. The market will continue to face greater destocking pressure, as it may be difficult for rental demand to grow significantly in the short term."