“With sustaining supply and weak growth in demand, Chengdu retail market’s average shopping mall vacancy rate edged up in Q4/2024, compared to the stable 10% in the first three quarters.”

SOPHY PAN, SAVILLS RESEARCH



Toy brands have accelerated expansion

• Retail sales of consumer goods in Chengdu reached RMB929.4 billion from January 2024 to November 2024, up 2.9% year-on-year (YoY).

• Three new shopping malls opened in Q4/2024, taking up about 70% of Chengdu retail market’s new supply in 2024 and pushing total retail property stock to 8.84 million sq m.

• Low occupancy rate of new projects opened in Q4/2024 drove citywide shopping malls’ average vacancy rate up to about 10.7%, up 0.8 ppts from Q3.

• With the weak growth in new demand, shopping malls’ average rent continued to decline. Average first-floor rent reached about RMB402 psm pmth, down 2.1% YoY.

• Outdoor sports was among the few brand categories that recorded active demand all year around, launching many first stores as well.

• Toy brands which fulfil consumers’ emotional needs or have trendy attributes accelerated expansions in 2024, rising to be a noticeable category in the current consumption market.

• Chengdu’s retail market still have quite a few projects in the pipeline in the next three years. Stable growth engines on the demand side need to be explored against uncertainties in the market.