Chongqing- Chongqing has laid a solid foundation in consumer finance, attracting well-known enterprises to settle, with the leasing demand of consumer finance enterprises bucking the trend in the third quarter, according to a report by Savills on October 8.

The most active leasing demand industry

According to the report, the leasing demand of consumer finance enterprises in Chongqing rose against the trend, boosting the financial industry to become the most active leasing demand industry. The newly leased area grew by 23% in the third quarter, and its area share rose to 21%. Professional services and information technology were second and third, accounting for 16% and 12%, respectively.

Chongqing has laid a solid foundation in consumer finance, and its booming business environment continues to attract well-known enterprises to settle down.

For example, the International Land-Sea Center (Chongqing 100) in Yuzhong District ranks among the world's top 20 super high-rise buildings. Government and enterprise attract investment and contribute to many projects. Among them, Galeries Lafayette, an upmarket French department store chain, will set up its fourth store in China and the first store in southwest China.

Regarded as the "mother town" of Chongqing, Yuzhong District ranked among the top 30 districts of China's headquarters economy in the 2022 China International Fair for Trade in Services (CIFTIS).

Consumer market with more discount stores

Due to the repeated epidemic and limited commercial electricity use during Chongqing's heat waves this summer, some commercial projects temporarily suspended business during the third quarter. The demand for the retail market weakened, resulting in the city's overall vacancy rate increasing to 19%.

However, some tea and dessert brands like Sexy Tea and Mvuke Tokyo kept expanding, and several catering brands like Chua Lam's Dim Sum continued to increase their layout in Chongqing. Chua Lam's is relatively casual dining compared to some fancier dim sum places, making it a welcomed addition for seekers of affordable lunches and anyone craving standard dim sum fare.

Under the increasing uncertainty of the economy, some consumers became more rational and pursued cost-efficiency performance, which accelerated the classification of the consumer market and thus led to the rapid expansion of discount stores in this quarter.

Discount stores like Hotmaxx and Outlets continued to expand, while BIGOFFS and Savelots have begun to lay out in the Chongqing market.

The International Land-Sea Center and Chongqing Longfor Times Paradise Walk Pavilion D will enter the market in the fourth quarter of 2022. It is estimated to bring about 400,000 square meters of new supply to Chongqing's retail market.

In the long run, new projects will bring more brands to Chongqing's retail market and tap more consumption potential.

"Chongqing's office lease market has remained stable amid the high temperature and epidemic," said Dai Hui, head of Savills West China Agency Department. "With effective epidemic prevention and control, Chongqing's office market demand may pick up. However, as the number of leased buildings is likely to rise, the market may still face pressure before the end of the year."