Chongqing - Savills, the world's leading real estate service provider, released the report of Chongqing Real Estate Market Review 2019 and 2020 Outlook on January 15, 2020.

Eric Wo, Managing Director of Savills Western China, introduces the company to visitors. (Photo from Savills)

The report mentioned that the high-quality economic development laid a foundation for the Class A office building requirement, the information technology industry became the second-largest source of leasing transactions in the city, and the operation of third-party office space become differentiated. On the other hand, well-known brands in the retail property market continued to enter Chongqing, with vacancy rates falling and rental levels remaining the same as last year.

Office leasing demand in the financial industry ranked first

The supply of Chongqing's Class A office building market remained in the adjustment stage in 2019. There were two reasons. One was that some of the projects under construction shifted to apartments and hotels, and the other was that projects that have been completed or meet the delivery conditions continued to postpone entry into the market to find opportunities for bulk transactions.

The financial industry still ranked first in office leasing demand in all sectors, with a proportion of 21.4%. The insurance industry was active within the last year, jumping into the number one source of transactions in the financial industry, with a contribution rate of over 30%.

Office building market paid attention to “fully furnished”

In 2019, Chongqing's digital economy achieved remarkable results. Information technology companies represented the second-largest source of leasing transactions in the Grade A office market, accounting for 16.0%, with a year-on-year increase of 5 percentage points. A number of leading companies, optimistic about Chongqing's development, set up headquarters in Chongqing.

It is expected that several in 2020 Class A office projects, including Raffles Chongqing, will enter the market. The market supply is expected to be no less than 250,000 square meters, and the supply will reach a new level.

World-famous retail brands in Chongqing

Chongqing had four new retail projects in 2019, adding a total of approximately 515,000 square meters of new supply; thus, the total retail property market exceeding 6.4 million square meters.

Next year, the market will have more than 1 million square meters of new supply. The core business district Guanyinqiao will witness a number of high-quality projects and the commercial areas in Yubei District multiple projects in, all may change the pattern of the retail sector. It is expected that there will be more subdivisions in the parent-child category of children in the coming year. Cross-border cooperation between brands may continue to rise.