“Chengdu retail market’s new projects have become more diverse, adding much freshness to the market. Apart from the opening of new shopping malls and relaunch of renovated projects, non-traditional retail projects have kept on innovating retail space and contents, exploring possibilities for Chengdu retail development.”

SOPHY PAN, SAVILLS RESEARCH



Non-traditional retail enhances the neighboring area’s vitality.

• Retail sales of consumer goods in Chengdu reached RMB413.4 billion from January 2024 to May 2024, up 1.7% year-on-year (YoY).

• The Ring entered the Chengdu market in Q2/2024, thus total retail property stock within the main urban areas1 increasing to about 8.52 million sq m.

• In Q2/2024, shopping malls’ average vacancy rate dropped 0.4 ppts QoQ to 9.6%; average first-floor rent reached RMB414 per sqm per mth.

• Old projects have been actively pursuing transformation, adapting to the fast-changing retail market. Paradise Walk (Sanqianji) reopened in Q2 after renewing the building façade, interior design and tenant mix over several months.

• Non-traditional retail projects represented by Luxelakes CPI Island and CyPARK have drawn considerable attention and displayed much influence on the market, enhancing the neighbouring area’s vitality.

• Chengdu retail market leasing demands remain mediocre, with many brands reluctant to add stores..

• Retail brands took up about half of new leases, among which gold and jewellery, outdoor sport, high-end cosmetics and perfume brands were active.

• In H2/2024, new projects including Poly International Plaza and Tianfu Garden City are expected to open; market may still face considerable pressure.