“Foreign tourists in Chengdu have increased considerably in 2024. The first buy-and-refund spot in Sichuan province was set up at Chengdu IFS in September, facilitating the tax refund process for foreign consumers. More renowned brands have opened stores at Chengdu airports. All above are favorable to promote the consumption of foreign tourists.”

SOPHY PAN, SAVILLS RESEARCH



Large supply is expected at the end of the year

• Retail sales of consumer goods in Chengdu reached RMB664.6 billion from January 2024 to August 2024, up 1.9% year-on-year (YoY).

• No new shopping malls opened in Q3/2024. Total retail property stock remained at about 8.52 million sq m. 

• In Q3/2024, tenants changed more frequently than in 1H/2024. Citywide shopping malls’ average vacancy rate increased 0.3 ppts from Q2 to about 9.9%. 

• Consumption market continued its weak growth and shopping malls’ average rent continued to decline. Average first-floor rent reached RMB414 psm pmth. 

• As of July 20, the inbound and outbound passenger flow at Chengdu airports has exceeded that of the whole year of 2023. With the number of overseas tourists rising significantly, their consumption is expected to become a new growth source in the market. 

• New projects including Poly International Plaza and Tianfu Garden City are expected to open at the end of the year, bringing a supply peak to the market.

• Chongqing’s retail market is currently experiencing intense industry competition, coupled with changes in consumption concept and consumption mode. Stock property adjustment will remain a theme for future market.