“Government’s subsidies will surely boost the local consumption market and support the further development of the first-store, new concept and flagship-store economy, propelling a more sustainable development of the local retail market and enhancing the impacts of regional catchments.”

CARLBY XIE, SAVILLS RESEARCH



Retail sales inch up

• Shenzhen’s retail sales inched up by 1.1% YoY to RMB686.1 billion as of August 2024.

• Quarterly new supply peaked in the last five years as five projects with a combined retail GFA of approximately 575,000 sqm entered the market.

• The citywide average vacancy rate edged down by 0.3 ppt QoQ and 1.8 ppts YoY to 7.7%.

• Some overseas niche fashion brands with global expansion plans, mainly from South Korea and the US, set foot in Shenzhen.

• The citywide average ground-floor rent edged down by 0.8% QoQ and 2.5% YoY on a rental index basis to RMB533.9 psm pmth as of end-Q3/2024.

• To boost the local consumption market and support the further development of the first-store, new concept and flagship-store economy, the local government has come up with policies subsidising retail property landlords.