CHENGDU’S GDP RANKS 7TH AMONG ALL CHINESE CITIES

Chengdu’s GDP reached RMB2207.47 billion in 2023, ranking 7th among all Chinese cities. Tertiary industry added value reached RMB1510.90 billion, up 7.5% YoY. The direct service industry, specifically accommodation and catering, saw significant improvement with 17.8% of added value increase. Total fixed asset investments grew 2.0% YoY. The investment market remained active in 2023, with six en bloc transactions recorded. Of these, half were office buildings, with a total transaction value of RMB2.5 billion.

GRADE A OFFICE SUPPLY HAS SLOWED SINCE 2023

The Grade A office new supply in 2023 significantly decreased YoY to 242,000 sq m, with the city’s Grade A office stock rising to over 3.87 million sq m. However, the large amount of new supply from 2021 to 2022 has intensified competition in the office rental market.

In 2023, 70% of the new supply area came from the Tianfu New Area. With the entry of high-quality office buildings and the continuous improvement of transportation, public services and supporting facilities, the district is expected to attract more outstanding enterprises to settle and form industrial clusters.

No new projects entered Chengdu’s Grade A office market in Q1/2024, and the total stock remained unchanged.