Shanghai Retail

Asian Cities

2H 2014

 

Who is expanding?
Affected by the slowing economy, retail sales growth rates in Shanghai continued to slow to less than 10% in the first six months of 2014. Additionally, the city is faced with an average annual supply influx of 1.0 million sq m over the next three years, placing downward pressure on city-wide rental levels.

Since 2H/2013, Shanghai’s overall rental growth has continued to slow. Although a select number of leading projects were able to achieve an annual rental growth rate of around 5%, other projects, especially new ones, are finding it more difficult to reach previous expectations. As a result, large space mainstream fashion retailers are now seeing a trend of paying purely based on turnover rates with no base rents.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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