“Guangzhou released new initiative dubbing the city as a gourmet paradise at a global scale. This is expected to raise enthusiasm of the catering business owners in the short term and nurture a better environment for related retailers/operators store opening in the mid- to longterm.”

CARLBY XIE, SAVILLS RESEARCH



Quarterly net take-up turned negative for the first time since Q2/2023.

• Guangzhou’s retail sales increased to RMB472.7 billion as of May 2024, up 2.0% YoY. The growth fell short of its annual growth target of 5.5% in 2024 and contracted by 7.2 ppts YoY.

• The total stock of Guangzhou’s retail property market reduced to 7.4 million sqm as of end-Q2/2024 as the Science Town Mall was withdrawn for renovation temporarily while no new shopping centre was launched.

• F&B sector performed better than expected in terms of new store openings as some casual dining, bakery, and tea store brands continued to expand in Guangzhou during the quarter.

• Expansion activities from the fashion and accessories & cosmetics sectors slowed with the percentage of new store openings from these two sectors reduced by 11.0 ppts QoQ.

• The average vacancy rate edged up 0.1 ppt QoQ to 12.7% by quarter end.

• The citywide rents fell by 0.1% QoQ on a rental index basis to an average of RMB621.4 psm pmth as of end-Q2/2024.