Shenzhen Retail 1H/2019

Shenzhen’s economy has grown rapidly over the past three years, with GDP CAGR during the period reaching 11.4%. By the end of 2018, local GDP had increased by 7.6% year-on-year (YoY) to approximately RMB2.4 trillion, according to the Shenzhen Statistics Bureau. Meanwhile, the retail market has been active, with the retail sales CAGR reaching 7.1%. By the end of 2018, retail sales had increased by 7.6% YoY to RMB616.9 billion, also according to the Shenzhen Statistics Bureau. To a growing number of people, Shenzhen remains a dynamic and attractive city for both working and living, and its permanent population stood at 12.5 million at the end of 2017. Shenzhen’s strong economic and demographic fundamentals have supported the growth and development of its retail property market.

As a result of rapid urbanisation, six major retail property submarkets have developed in Shenzhen at the end of 2018. Prime areas include Luohu, Futian and Nanshan, which are primarily distributed alongside Shennan Avenue. Non-prime areas, including some retail nodes, have emerged in Bao’an, Longgang and Longhua districts. The total stock of the Shenzhen retail property market (mid- to high-end shopping centres) was approximately 4.3 million sq m at the end of 2018.