Luxury Brands Fuel Retail Growth in Local Property Market
Jason Chang, Head of Retail, Northern China

Demand for retail property became increasingly active in 2Q10, with moderate rental increases seen in some Northern China markets such as Beijing, Shenyang, Tianjin and Qingdao. This growth is primarily driven by the expansion of international luxury and selected fast fashion brands. In Beijing, the demand for retail space will continue to pick up in the second half of 2010, with a total supply of GFA 677,000 sqm expected to enter the market, 70% of which will be completed during the retail peak season in 3Q10. We expect rents in selected cities such as Beijing to grow steadily with vacancy rates stabilizing over the latter half of 2010.