Chongqing - The resilience of the Chongqing real estate market in the third quarter of 2023 reflects a declining retail market vacancy rate, a strengthened commercial stock upgrading, and a notable rise in consumer service leasing demand, according to the Chongqing Real Estate Market Review and Outlook for the Third Quarter of 2023, released by Savills on October 10.
The introduction of Longfor Chongqing Lijia Paradise Walk North Shore and InCity Chongqing has boosted the city's total stock of premium retail properties to 7.99 million square meters. This expansion and adjustments in some retail projects have driven down the average vacancy rate to 19.6%.
The Longfor Chongqing Lijia Paradise Walk North Shore. (Photo/ Longfor)
Specifically, the North Shore, located adjacent to Longtang Lake Park, features a diverse mix of dining, beverages, leisure, entertainment, culture, and arts, menhancing the existing offerings at Lijia Paradise Walk AB Pavilion.
Making its debut in Chongqing, InCity Chongqing integrates urban sightseeing with convenient access to riverside parks and rail transit. It also welcomes trailblazing brands like Galeries Lafayette, TSUTAYA BOOKS, and NEOBIO, elevating the city's lifestyle.
Starlight 68 Plaza has unveiled a new commercial pedestrian zone, Hill 5, attracting eateries like Egg Bomb—Southwest China's first store—and the popular coffee chain %Arabica. The nostalgic Starlight City Cable Car has also been launched, adding a new dimension to the city's commercial landscape. New Century Department Store on Guanyinqiao Pedestrian Street has repurposed its 10th-floor balcony into a verdant sky garden experience.
The Starlight City Cable Car on Hill 5. (Photo/ Starlight 68 Plaza)
More quality projects in the Grade A office market
In recent years, the supply of retail properties in Chongqing has steadily increased, intensifying competition. Lin Jing, director of Savills West China Commercial and Retail Services Department, underscores the need for innovative operational models and enhanced services to stay competitive amid the growing supply of retail properties.
The Grade A office market has remained stable, with the total stock holding at 2.62 million square meters and a slight dip in rental rates. The vacancy rate for Q3 2023 fell to 29%, due in part to specific projects delaying their entry into the market. The professional services sector led the demand in leasing, accounting for 18% of new leasing space, followed by the IT and real estate sectors at 15% and 13%, respectively.
Consumer services leasing experienced a resurgence, nearly matching 90% of the new leasing area recorded in the first half of the year.
Dai Hui, head of Savills West China Agency Department, anticipates a growing focus on project quality in the Grade A office market. He suggests that adapting leasing strategies and diversifying services will be crucial for maintaining a competitive edge.