Shanghai & Chengdu – the world's shopping centre capitols

Eight of the 10 busiest cities for shopping centre construction around the world are in China. Shanghai is leading the world in building shopping centres, with 3.3 million square metres under construction, followed by Chengdu, with 3.2 million sq metres.

The South China Morning Post writes about the latest Marketscore report of commercial property consultancy firm CBRE. The experts of the firm say that Shanghai, Beijing and Hangzhou offer the brightest prospects for investors in retail real estate. The CBRE study advises investors to exercise caution when considering opportunities in second-tier cities such as Shenyang and Wuxi. Shenyang is, according to CBRE, "one of the first cities in China where the retail market has become exposed to oversupply risk".

Shenyang's total retail stock amounted to 5.1 million sq metres at the end of June, the most in any second-tier city, with a vacancy rate of 19 per cent, a relatively high figure compared to other major cities in China. It said Shanghai's retail property market has vacancy rates remaining well below 10 per cent. CBRE’s report expects international retailers to “continue to focus their China market entry plans on Shanghai, a trend that will support overall leasing demand.”

The report analyses 17 city markets in terms of 14 key indicators that influence the performance of the retail property market.

Further reading on scmp.com

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