“While new supply brings fresh energy to the market, it also intensifies leasing pressure, making tenant curation and experiential upgrades more critical than ever.”

JAMES MACDONALD, SAVILLS RESEARCH



Popular Beverage Brands Expand Presence

• Retail sales reached RMB 374.5 billion in the first five months of 2025, up 7.4% YoY.

• No new projects launched in 1H/2025, keeping total prime retail stock at 8.27 million sqm.

• Flagship stores of popular coffee and tea brands continued to open ahead of summer, with shopping centres leveraging F&B tenants to drive footfall and spending.

• Malls are addressing large vacant units through thematic renovations and experiential upgrades.

• The citywide vacancy rate remained stable in Q2/2025 at 10.4%, up 0.5 ppts YoY.

• Average first-floor rents declined 0.2% QoQ to RMB 13.8 psm pday, representing a 0.7% drop YoY.

• Seven new projects totalling 563,000 sqm are scheduled to launch in 2H/2025.