“Amid challenging economic conditions, most projects concentrated on maintaining occupancy, while the overall vacancy rate was affected by new supply.”

JAMES MACDONALD, SAVILLS RESEARCH



New supply enhances night consumption experiences

• Retail sales totalled RMB494 billion in the first eight months of 2024, up 1.0% YoY. General retail sales and F&B were up 0.7% and 2.2% YoY, respectively.

• Two new projects were launched in Q3/2024, adding 132,000 sqm of new supply to the market, and bringing the city’s stock to 8.07 million sqm.

• Newly launched projects have significantly impacted consumption by boosting night economy activities, such as concerts and bars, increasing customer footfall and extending their stay in the area.

• The citywide vacancy rate grew by 0.6 ppt QoQ to 10.5% in Q3/2024, up 0.1 ppt YoY.

• First-floor rents remained unchanged in Q3/2024 at an average of RMB14.2 psm pday, up 0.2% YoY.

• Three projects are expected to launch in Q4/2024, bringing 236,000 sqm of new retail space to the market.