Retail sales grew 8.1% YoY in the first 11 months of 2015, 0.6 of a ppt lower than the same period last year.
285,200 sq m of new supply launched onto the market in Q4/2015, with annual supply totalling at 621,400 sq m
First-floor shopping mall rents in prime retail areas increased 0.9% YoY to an average of RMB48.4 per sq m per day, while non-prime areas remained stable at RMB17.2 per sq m per day.
2015 saw vacancy rates in prime areas increase 1.0 ppt to 4.8% while non-prime areas (including downtown and decentralised areas) fell 0.8 of a ppt to 9.5%.
Forecast
20 new shopping mall projects (1.3 million sq m of new space) are expected to launch onto the market in 2016, 10% of which will be located in prime areas.
Qibao will receive the most new supply of any region with 230,000 sq m
Wujiaochang will receive its third 100,000 sq m+ retail project with the opening of Hopson One, the area will then be the only one in the city with three or more projects in excess of 100,000 sq m.
One new serviced apartment, Green Court Place, launched in Q4/2015, adding 482 units to the leasing market.
Overall residential rents rose 0.8% in Q4/2015 to an average of RMB182.3 per sq m per month, up 1.2% YoY, while vacancy rates saw a slight increase of 0.1 of a ppt QoQ to 9.2%, down 1.8 ppts YoY.
Serviced apartment rents increased by 1.6% QoQ to an average of RMB221.2 per sq m per month, up1.8% YoY, while vacancy rates fell 1.4ppts QoQ to 8.8%, and remained down 3.6 pptsYoY.
Strata-title apartment rents increased by 1.9% QoQ to an average of RMB175.0per sq m per month, up2.4% YoY, while vacancy rates increased 3.7ppts QoQ to 14.0%, up 1.8pptsYoY.
Savills plc issued this content on 2016-01-06 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-06 10:29:03 UTC
Original Document: http://www.savills.co.uk/_news/article/110560/141987-1/01/2016/prime-assets-in-first-tier-cities-continue-to-attract-capital-on-the-loosening-of-monetary-polices