INDEPENDENT MARKET RESEARCH Rental Values Beijing’s average retail rents declined to RMB739.94 psm pm as at 2023, down 0.9% yoy. Average retail rents declined in tandem with the new supply that entered the market. Market Outlook Retail demand is expected to remain robust and provide some support in the coming year. In line with the government’s plan to transform Beijing into an international consumption centre, consumer spending is expected to drive Beijing’s retail market. The Beijing government’s plan, including offering of financial incentives, towards a target of opening more than 3,000 “first stores” from domestic and international brands is expected to develop the retail brand offerings and boost retail space demand in the city. Source: Colliers International Consultancy & Valuation (Singapore) Pte Ltd 900 800 700 600 500 400 300 200 100 0 BEIJING AVERAGE RETAIL RENTS (2018 TO 2023) 2018 2019 2020 2021 2022 2023 RMB psm pm 862.85 782.00 746.43 739.94 875.08 785.14 2.3. GUANGZHOU Existing and Potential Supply As of 2023, Guangzhou’s total retail stock stood at 7.8 million sq m, up 8.3% yoy. The total net new supply in 2023 was estimated to be about 0.6 million sq m. Completions included Guangzhou Huangpu Joy City and Zhujiang Huoxing 1926 Mall of near 60,000 sq m and 35,000 sq m respectively. Approximately 0.4 million sq m of retail space is anticipated to be delivered across Guangzhou in 2024. Total retail stock is expected to reach around 8.2 million sq m in 2024. Demand and Occupancy Over the past five years, the average gross absorption of retail space in Guangzhou stood near 186,000 sq m per year. As of 2023, the average gross absorption recorded about 550,400 sq m and the retail occupancy rate increased by 0.5% to 85.7%. Guangzhou’s retail market rebound was supported by China’s broad-based reopening, return of tourism and migrants, and consumers’ pent-up demand for dining and entertainment, which translated into a gradual recovery in overall retail occupancy rate in 2023. Retail space demand remained comparatively moderate than pre-pandemic levels as retailers remained cautious and cost-conscious to undertake rapid expansion plans. GUANGZHOU MAJOR RETAIL POTENTIAL SUPPLY IN 2024 Project Supply (sqm) Canton Tower Square 57,000 Financial City Plaza (Guangzhou International Financial City) 85,000 Yida Fanghuiyuan 110,000 Source: Colliers International Consultancy & Valuation (Singapore) Pte Ltd 66 CAPITALAND CHINA TRUST
RkJQdWJsaXNoZXIy NTkwNzg=