“Despite the consumption downgrade which has been widely discussed lately, Shenzhen’s retail property market continues to benefit from support of policies, demographic advantages and Hongkongers’ “Go North to Spend” campaign, distinguishing itself from other GBA peers in terms of more diversified brand penetration.”

CARLBY XIE, SAVILLS RESEARCH



Vacancy lowest in five years

• Shenzhen’s retail sales increased to RMB166.3 billion as of February 2025, up 1.7% YoY.

• There was no new supply in Q1/2025, and the citywide total stock remained at 7.4 million sqm by quarter-end.

• The citywide average vacancy rate continued to decrease by 0.6 ppt QoQ and 1.8 ppts to 6.8% as of end-Q1/2025, hitting the lowest since 2020.

• The citywide ground-floor average rent declined by 0.6% QoQ and 2.4% YoY on a rental index basis to RMB533.0 psm pmth as of end-Q1/2025.

• Four new projects with a total retail GFA of approximately 610,500 sqm are expected to be completed and handed over to the market in Q2/2025.