“Pudong’s year-end reversal in the rising vacancy trend has been encouraging, but weaker performance in certain parts of Puxi continues to weigh on overall net absorption.”— James Macdonald, Savills Research



The market is becoming increasingly polarised

Supported by consumption vouchers and trade-in subsidy policies, Shanghai’s total retail sales of consumer goods rose 5.0% YoY in the first 11 months of 2025.

First-floor rents in shopping malls in Shanghai’s urban core fell 0.6% in Q4/2025 and 1.8% YoY.

Overall vacancy showed a mild improvement, holding flat QoQ at 10.9%, down 0.5 ppts YoY.

Performance dispersion across Puxi submarkets and individual schemes intensified, reinforcing a winner-takes-all landscape in multiple districts.

Benefiting from the take-up of several previously vacant large F&B units in Zhuyuan and Huamu areas, Pudong’s net absorption turned positive in Q4/2025 after two consecutive quarters of negative absorption.

Younger consumers’ demand for social experiences and self-expression is driving a wave of new bar openings across Shanghai.

With around 20% of 2025 retail GFA deferred, 2026 new openings are expected to rise materially to 820,000 sqm, potentially the highest level since 2022.