“As Chongqing’s main urban area continues to see limited new supply, the renovation of existing projects and community commerce may provide consumers with enriched shopping experience.”

SOPHY PAN, SAVILLS RESEARCH



Urban renewal projects further release consumption.

• From January to May 2024, the city’s total retail sales of consumer goods reached RMB627.9 billion, up 4.6% YoY. • By type of consumption, from January to May 2024, the city’s retail sales increased by 3.3% YoY, and catering revenue increased by 12.9%.

• In the first half of 2024, Far East City Shopping Center, Capita Mall · Chapter 9 and Yunling Paradise Walk entered the Chongqing retail property market, pushing the city’s high-quality retail stock to 8.1 million sqm (including department stores).

• The large market supply and flat retail market demand in Chongqing led to an overall market occupancy rate of 20.2%.

• In terms of rent, the overall demand in the consumer market slowed down, with the ground-floor average rent in the city falling by 0.3% YoY to RMB372.9 per sqm per month.

• In the first half of the year, the source of new leasing demand was still dominated by commodity retail, of which high-end fragrance and chemical products continued to have strong demand.

• In the future, Chongqing’s retail market will face a large amount of new supply and a greater market decentralization pressure. The city’s overall vacancy rate is expected to remain at a high level.