2015-03-16-第一太平戴维斯-成都商铺市场简报2014年第四季度_3页_807kb

Chengdu Retail Market Summary (Q4 2014)

1. Overview

In Q4 2014, Chengdu's retail market experienced significant growth with the introduction of Caide Square Tianfu and Far Oriens Taikoo Li, adding approximately 240,000 square meters to supply. This follows 2014's total new supply of about 980,000 square meters. Retail sales increased by 12.1% to 3,371 billion CNY in November 2014, driven by strong holiday demand. Major events like births, New Year festivals, and Santander holidays are expected to maintain steady retail growth.

2. Vacancy Rates

• Quality mall vacancy rates rose to 8.1% in Q4 2014, an increase of 0.7 percentage points.
• Core areas saw vacancy rates increase to 5.3%, while non-core areas reached 8.6%.
• Caide Square Tianfu specifically faced challenges with high vacancy among premium brands due to mismatched positioning, including exits like NOVO.

3. Rental Rates

• Average daily rental rates for quality malls increased by 0.5% to RMB 17.2 per square meter.
• Core rates rose to RMB 38.6 per square meter per day, up 0.1% compared to non-core rates of RMB 12.1 per square meter per day.

4. Key Projects

• Caide Square Tianfu: A 280,000-square-meter mixed-use project in the new south business district, near the train station, with strong tenant appeal but facing subdued performance due to brand-consumer misalignment.
• Far Oriens Taikoo Li: A 250,000-square-meter comprehensive project in the core Chunxi Road district, opened in December 2014, featuring international brands and high-end retail, contributing to rental growth.
• Challenges included competition from adjacent developments like Chengdu International Finance Center, leading to cautious expansion by luxury brands.

5. Market Outlook

For 2015, approximately 20 new retail projects are expected to enter the market, adding about 1,930,000 square meters of new supply. This could saturate the high-end retail segment, causing cautious brand growth and increased pressure on vacancy and pricing. Non-core areas may see rental increases as market division and competition intensify, with more focus on multi-subjective retail trends and innovative projects.

6. Project Focus Example

• Longfor Jinan Tianjie: A large-scale project (approx. 570,000 square meters) in Wuhou District, targeting middle-income families, with brand confirmations set for October 2015.