Knight Frank and Holdways have published the latest China Retail Property Market Watch report. Slower retail sales growth and the Central Government’s policy on suppressing corruption and luxury spending have decelerated the expansion plans of luxury retailers in China. The market saw its focuses shift to lower-tier cities and the mass segment involving fast fashion brands, supermarkets and catering providers.
A number of new shopping centres opened during the first half of 2013. The total stock of prime shopping centre space rose 4.7% in seven major Mainland cities covered in this report, compare with the end of 2012. However, the vacancy rates of prime shopping centres in these cities remained stable compared with end 2012, reflecting strong demand for retail space in Mainland China. Rents of such space also remained stable in the first half of 2013.
Abundant supply of retail properties is in the pipeline in major cities, but with further urbanisation in China and the government’s continual efforts in promoting domestic demand, Thomas Lam, Director and Head of Research & Consultancy, Greater China at Knight Frank expects the vacancy rate and rents of prime shopping centres remain steady in 2013.