China Retail Property Market Annual Report 2024

2024 has been designated as China's "Consumption Promotion Year," aimed at driving structural upgrades through trade-in programs and service innovation. JLL's comprehensive analysis of China's 40 major cities, including 21 Key Cities, highlights the following key trends in retail property market: 

Supply-Side: 

• The prime retail stock in 21 key cities reached 149 million sqm, with 8.7 million sqm new supply added in 2024.
  
  
• Nationwide, the total retail stock across the 40 tracked major Chinese cities exceeded 200 million sqm.

Demand-Side: 

• Economic challenges have led to a reduction in discretionary spending, resulting in decreased new lease demand for fashion and F&B sectors in shopping malls.
  
  
• In the evolution of consumption behaviors along with the rise of younger generations – GenZ, retail sectors such as entertainment, experience-based retailing, and strong IP-driven consumption have demonstrated a resilient, stabilizing or even expanding momentum against the broader retail market downturn.

Performance Metrics:   
 

• Average ground-floor rents of prime malls saw a 3.3% YoY decline, a steeper drop compared to 2023.
  
  
• Vacant retail spaces are gradually being reoccupied, with over half of the cities reporting a decline in vacancy rates.