“Accelerated promotion for digital industry development should boost office leasing demand in the sector, especially Jiangbei District, where such enterprises gather and policy support is in place.”

SOPHY PAN, SAVILLS RESEARCH



Professional services sector, especially law firms, continued to post stable demand, making it the most active sector in leasing in the first half of the year.

• In H1/2024, Chongqing’s Grade A office market had two new projects delivered, Midtown Office in the Xinpaifang and Junhao ICFC Block A in Jiangbeizui, respectively, bringing 235,000 sqm of new space. The city’s current Grade A office stock is 2.9 million sqm.

• The city’s average rent decreased by 1.4% YoY to RMB79.5 per sqm pm as some buildings continued to reduce rents to attract tenants.

• Affected by large volume of new supply and slower-thanexpected market recovery, the overall vacancy rate of the city’s Grade A office market climbed to 34.9%.

• In H1/ 2024, nearly 86.2% of new leasing transactions were less than 500 sqm, indicating a slow recovery on the demand side.

• The IT industry had the largest increase in new demand in the first half of this year, accounting for 19.7% of the total new transaction area in the city.

• Further regulation of off-campus training activities provides a guarantee for the long-term stable development of the industry.