“While constantly remodelling leasing strategies has become almost mandatory to overcome the changing retail market, the light before dawn of increase in spending propensity and recovery of market confidence can be expected, as boosting consumption and expanding domestic demand will be one of top priorities for China’s economy in 2025.”

CARLBY XIE, SAVILLS RESEARCH



The F&B sector remains a major contributor

• One shopping centre debuted in Q4/2024, injecting 114,000 sqm into the market. Consequently, Guangzhou’s total retail property stock expanded by 0.4% YoY to 7.6 million sqm by end-2024.

• Some properties introduced new brands targeting young generations and enjoying high popularity on social media platforms to attract footfalls and increase sales revenues.

• The F&B sector dominated the leasing market throughout 2024, with the sectoral new store opening accounting for over 40% of the total leasing demand within the year.

• More stuffed animal and plush toy retailers made their first presence in Guangzhou given a surge in popularity among young generations.

• The citywide average vacancy rate fell by 0.6 ppt YoY to 12.2% by end-2024.

• The citywide rents edged down 0.1% YoY on an index basis to an average of RMB618.7 psm pmth as of end-2024.