“In Q3/2024, the Wuhan retail market witnessed the opening of Wuhan SKP and Wanda Plaza (Han Street). The city’s high-end retail landscape continues to benefit from the new supply.”

JAMES MACDONALD, SAVILLS RESEARCH



Luxury upgrade accelerates with trendy brands expanding

• The market welcomed the opening of Wuhan SKP and Wanda Plaza (Han Street) in Q3/2024, which brought 280,000 sqm of new supply, pushing the total stock to 8.53 million sqm.

• The market proactively looked for new growth. Luxury and domestic trendy retail brands have emerged. Restaurants with regional characteristics enriched the F&B sector’s diversity. Meanwhile, the services sector has seen growth with hair care and indoor entertainment tenants.

• Driven by newly opened projects, leasing activity performed well. The citywide vacancy rate edged down 0.5 ppts QoQ and decreased 2.2 ppts YoY to 9.9%.

• Developers kept lowering rent expectations to attract ideal tenants. Shopping mall ground-floor rents declined 0.6% QoQ and 1.4% YoY to an average of RMB 355.8 psm pmth by Q3/2024.

• Looking ahead to the rest of 2024, Wuhan’s retail property market will see the opening of Qincheng MixC One. The annual delivery is anticipated to be nearly 1 million sqm, which will accelerate Wuhan’s construction of an international consumption city.