“Retailer sentiment was impacted by the marginal growth in the city’s retail sales and many retailers had to think twice before making a commitment of upholding their new store opening plans.”

CARLBY XIE, SAVILLS RESEARCH



Most landlords kept rental rates on par with previous quarters.

• As of June 2024, Shenzhen’s retail sales accumulated to RMB507.2 billion, up 1.0% YoY.

• There was no new supply during Q2/2024, and the citywide total stock remained at 6.8 million sqm by quarter-end.

• The citywide average vacancy rate decreased to 8.0%, down by 0.5 ppt QoQ and 2.1 ppts YoY.

• F&B continued to outperform other sectors in new store openings in Q2/2024, taking up 45.3% of the quarterly total new leases.

• The citywide ground-floor average rent declined by 0.9% QoQ and 1.7% YoY on a rental index basis to RMB565.5 psm pmth as of end-Q2/2024.

• For the upcoming Q3/2024, four projects with a total GFA of 495,000 sqm are scheduled for opening.