“Shenzhen continues to distinguish itself as a launch market for emerging domestic brands seeking to establish flagship and first-store locations.” —— Carlby Xie, Savills Research



Retail Expansion Gains Momentum

• No new retail supply was completed during 1H/2026, leaving total retail stock unchanged at 8.2 million sqm at the end of Q2/2026.

• Tenant mix optimisation at existing shopping centres and retailer expansion accelerated in Q2/2026, driving quarterly net absorption back into positive territory.

• The F&B sector remained the largest source of leasing demand, accounting for 47.9% of new store openings.

• Demand from the fashion, accessories and cosmetics sectors remained stable. Several designer brands opened new stores, online fashion retailers launched their first physical outlets, and jewellery brands continued to expand through flagship openings.

• The citywide vacancy rate fell 0.1 ppts QoQ to 6.6%, down 0.5 ppts YoY.

• Strong trading performance at several landmark projects and high-quality regional shopping centres continued to support leasing demand and rental growth.

• First-floor rents rose 1.0% QoQ on an index basis in Q2/2026 to an average of RMB523.5 psm pmth.