Group 1 - The market activity in Chengdu's Grade A office sector has cooled down in the latter half of Q2, with a notable increase in vacancy rates due to persistent supply and weak demand [1][2] - As of the end of Q2, Chengdu's Grade A office vacancy rate reached 32.8%, an increase of 1.7 percentage points in the first half of the year, with the Financial City area seeing a rise to 28.1%, up 5.8 percentage points [1] - The average rental price for Grade A offices in Chengdu has declined to 77.3 yuan per square meter per month, reflecting a 3.7% decrease over the first half of the year, with net effective rent dropping to 66.1 yuan after accounting for an average of 1.7 months of rent-free incentives [1] Group 2 - In the first half of 2025, the supply of new Grade A office buildings in Chengdu is expected to be around 240,000 square meters, which is only 60% of the initial forecast, yet it will push the total stock to over 10 million square meters [2] - The net absorption of office space has shown signs of recovery, reaching approximately 79,000 square meters in the first half of the year, a year-on-year increase of 16.7%, with Grade A office net absorption growing by 34.3% [2] - The ongoing supply has led to an increase in the overall vacancy rate for quality office spaces, which rose by 0.8 percentage points to 28.1% by the end of Q2, while the vacancy rate for Grade A offices increased by 0.3 percentage points to 35.2% [2]