Rental Values Guangzhou’s average retail rents declined to RMB624.17 psm pm as at 2023, down 3.1% yoy. Despite the improved retail market conditions supported by a recovery in consumer spending in Guangzhou, landlords remain cautious to raising retail rents until retailers’ business confidence improves. Market Outlook Consumer spending is expected to bolster Guangzhou’s retail market further in the coming year. Coupled with the government’s support to drive first stores, quality retail brands and projects into the city, this could improve retailers’ business confidence in the market. Average retail rents are expected to remain stable with minimal growth on the back of new supply to be introduced to the market. 3. BUSINESS PARK MARKET OVERVIEW 3.1. CHINA As of 2023, China’s average business park occupancy rate increased by 2.9% to 67.9%. Average nationwide business park rent recorded RMB36.00 psm pm, an increase of 1.7% yoy. Source: Colliers International Consultancy & Valuation (Singapore) Pte Ltd 800 700 600 500 400 300 200 100 0 GUANGZHOU AVERAGE RETAIL RENTS (2018 TO 2023) 2018 2019 2020 2021 2022 2023 RMB psm pm 733.00 705.77 643.90 624.17 733.19 672.51 Source: Colliers International Consultancy & Valuation (Singapore) Pte Ltd 1.0 0.8 0.6 0.4 0.2 0.0 -0.2 -0.4 -0.6 -0.8 100 80 60 40 20 0 -20 -40 -60 -80 GUANGZHOU RETAIL SUPPLY, DEMAND, AND OCCUPANCY RATE (2018 TO 2023) 2018 2019 2020 2021 2022 2023 Gross Absorption (LHS) Net New Supply (LHS) Occupancy Rate (RHS) sq m (million) % 0.7 93.7% 86.3% 85.2% 91.4% 86.9% 85.7% 0.6 0.3 0.6 0.7 0.6 0.2 0.3 (0.6)(0.5) 0.5 0.5 ANNUAL REPORT 2023 67 Financials Framework Portfolio Performance Leadership Overview
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