“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.”

SOPHY PAN, SAVILLS RESEARCH

Supply and demand are rising

• Chengdu’s Grade A office market recorded the delivery of Tahota Center and Shudao Innovation Center T1 in Q1/2025, totaling 200,000 sq m.

• The city’s average rent dropped to RMB93.1 psm pmth , with the rental index falling by 2.0% and 5.3% QoQ and YoY respectively.

• In Q1/2025, net absorption turned positive to around 27,000 sqm.

• The city’s vacancy rate rose 1.7 ppts YoY to 31.3%.

• IT and Finance sectors ranked as the top two sources of leasing transactions.

• Nearly 30% of newly leased space was located in the Financial City submarket.

• A new supply of more than 200,000 sqm is expected in Q2/2025, mostly in the Financial City submarket.