Chongqing - As the Chengdu-Chongqing economic circle celebrates its fifth anniversary in 2025, Gavin Tjong, Managing Director, West China at Cushman & Wakefield, shared his insights on the region's growth in a recent interview with Bridging News.

He highlighted that the Chengdu-Chongqing economic circle is now recognized as China's fourth key economic circle, positioning it as a major driver for its economic expansion.

Gavin Tjong, Managing Director, West China at Cushman & Wakefield. (Photo/Cushman & Wakefield)

Tjong emphasized that consumption and sales volume are primary concerns for the region's economic performance. Data reveals that in the first three quarters of 2024, the total retail sales of consumer goods in the area reached about 19,08 billion yuan (about 2.67 billion USD), marking a 3.3% increase compared to the previous year.

According to Tjong, this growth outpaces first-tier cities for several reasons. First, the population in Chengdu and Chongqing continues to grow, creating a larger consumer base. Second, the cost of living is lower compared to top-tier cities, offering greater spending potential. Lastly, the more relaxed lifestyle in these cities encourages greater acceptance of new brands and products.

Tjong also noted the complementary nature of Chengdu and Chongqing. Chongqing is an industrial hub in Western China, while Chengdu is experiencing rapid growth in the technology, media, and telecommunications (TMT) sectors.

"Our strategy to foster further development is to leverage these advantages and position ourselves to compete with other cities across China," he said.

As a global leader in commercial real estate services, Cushman & Wakefield regularly publishes industry reports, such as their annual Asian REITs Report, which has been released consecutively for eight years. 

According to their research, capitalization rates for office properties in prime areas of first-tier cities typically range from 4.9% to 6.1%, while in second-tier cities, they range from 6% to 7.3%. This trend is partly attributed to the growth of the Chengdu-Chongqing region.

Last year, Cushman & Wakefield assisted the China International Capital Corporation (CICC) with the IPO of the Liangjiang REIT in Chongqing on the Shenzhen Stock Exchange. Looking ahead to 2025, the forecasted cash flow distribution rate is 5.36%, offering a stable and promising return.

Liangjiang Digital Economy Industrial Park in Chongqing Liangjiang New Area. (Photo/Yantong Wang)

"Our research reports have provided valuable insights, serving as an essential reference for our clients and the broader market when making investment decisions," Tjong said.

Tjong also believes that running a business is as simple as operating under one roof and that living in the two cities should be as seamless as living in a single location.

He noted that, historically, Chengdu and Chongqing faced significant differences in terms of transportation, policy, and taxation. "What we need is a unified standard for both cities," he explained. "This means that a company setting up in one city should experience the same conditions as if they were operating in the other."

Tjong also highlighted the significant progress in transportation infrastructure between the two cities. Currently, three dedicated high-speed rail lines connect Chengdu and Chongqing. Numerous ongoing projects for metro, monorail, and airport expansions are also underway within the cities.

"The Chengdu-Chongqing region is a well-integrated mix," Tjong concluded. "We need to leverage our advantages and continue building on this momentum."