Knight Frank and Holdways have published the latest China Retail Property Market Watch report. The retail pipeline of new shopping centres continues in the second half of 2013. There is no strong evidence that floor space is being reined in and mega malls remain a strong feature of the retail landscape, particularly in Tier-2 cities.
Far from shrinking in size in the face of e-commerce, new fast-fashion stores are typically highly spacious, multi-level and take up some of the best locations in the centre. The rise of these mini-anchors is coinciding with the demise of traditional anchors such as old-format department stores.
Developers lacking experience, particularly with oversized centres in peripheral, poorly located areas, will increasingly find it difficult to maintain high occupancy levels and customer traffic. The gap between prime centres and non-prime centres is expected to widen in China, with the market becomingly marked by its increasingly polarity.
Thomas Lam, Director and Head of Research & Consultancy, Greater China at Knight Frank expects the retail rents and prices remain stable or continue their uptrend in Mainland China.
China Retail Property Market Watch