“Policies to boost consumption have increased short-term demand and gave retailers confidence in government support, though it’s still unclear if this will lead to a lasting recovery in sentiment.”

JAMES MACDONALD, SAVILLS RESEARCH



Quality projects drive market adjustment

• Retail sales in the first eleven months of 2024 totalled RMB713 billion, marking a 2.6% YoY increase. General retail and F&B sales grew by 2.9% and 1.1% YoY, respectively.

• Eight new projects added 835,000 sqm of retail GFA in 2024. Of these, two new projects launched in Q4/2024, contributing 198,000 sqm of new supply and bringing the city’s total retail stock to 8.27 million sqm.

• Newly launched projects not only filled local retail gaps but also exceeded expectations in opening performance, reflecting strong appeal to foot traffic.

• The citywide vacancy rate decreased by 0.6 ppts in Q4/2024 to 9.9%, remaining stable YoY.

• First-floor rents in Q4/2024 fell by 0.2%, averaging RMB14.2 psm pday, holding steady YoY.

• Six projects are set to launch in 2025, adding 689,000 sqm of retail space to the market.