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.”

SOPHY PAN, SAVILLS RESEARCH



Upgrades and relocations of existing customers account for up to 60% of total new leases.

• No new projects entered the market and the Grade A office stock remained at around 3.87 million sqm.

• The city’s vacancy rate fell 0.8 ppts YoY to 32.0%.

• The city’s average rent fell 1.6% YoY to RMB 99.5 psm pmth.

• Buildings providing finished offices or customized renovation services performed better in leasing transactions.

• Finance and professional services sectors were the two largest sources of new tenants, accounting for 36% of the total new transaction area.

• Consumer services sector jumped to the third in demand source, contributing nearly 12% to newly leased transactions.