the third quarter guangzhou market report is released, and the pace of retailers' store expansion has slowed down
2024-09-26
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on september 26, savills held a guangzhou media conference for the third quarter of 2024 and released the "guangzhou real estate market review and outlook in the third quarter of 2024" report.
xie jingyu, head of market research department of savills south china, said that in the third quarter, facing macro challenges such as insufficient demand, industrial structural problems, and slowing consumption growth, the guangzhou real estate market continued to be in a period of adjustment. against the backdrop of the continued market for office tenants, companies are actively seeking opportunities for office relocation and upgrading, and owners are also adopting diversified strategies to cope with market competition. retail owners are continuing to iterate and upgrade their brand portfolios in response to changes in the current market and consumer demand, introducing more popular and widely-received brands to boost project performance.
in the first seven months of 2024, guangzhou's total retail sales of consumer goods reached rmb 642.006 billion, down 0.3% year-on-year. among them, the total retail sales of wholesale and retail industries decreased by 0.5% year-on-year, and the total retail sales of accommodation and catering industries increased by 2.4% year-on-year, but the growth rate narrowed by 0.6 percentage points compared with the previous six months.
the report pointed out that in the third quarter of 2024, no shopping malls opened, and the total stock in the city remained at 7.444 million square meters. during the quarter, the owners continued to iterate and upgrade the brand portfolio in response to the current market and consumer demand changes, introducing more popular and widely accepted brands, which helped the quarterly net absorption to turn positive, and the occupancy rate of several projects also increased, driving the city's average vacancy rate to drop by 0.5 percentage points month-on-month to 12.2%.
"although brand adjustment activities of some projects this quarter helped the market introduce several high-quality fashion and accessories brands' first stores and boosted the overall occupancy rate of the market, the overall pace of store expansion of retailers has slowed down. during the quarter, the catering industry still dominated demand, but the proportion of new stores fell by 18.6 percentage points compared with the previous quarter." xie jingyu said that in the third quarter, against the backdrop of slowing consumption and intensified market competition, property owners were more willing to moderately adjust rental expectations based on the actual situation of potential brands and planned investment stores. the city's rental index fell slightly by 0.1% year-on-year, and the average rent was rmb 624.1 per square meter per month.
according to the report, guangzhou is expected to open a shopping mall in the fourth quarter of 2024, bringing 85,000 square meters of new supply. by the end of the year, the city's total stock is expected to exceed 7.5 million square meters.
"in the short term, against the backdrop of a slowing consumer market, brands will become more cautious about expanding their stores. therefore, how to adapt to new changes in the consumer market, optimize and renew the brand portfolio, enhance the project's ability to attract customers, and help the project and brand achieve win-win results will continue to be the main focus of shopping center owners' asset operations." xie jingyu said.
text｜reporter sun qiman
