China Remains A Strong Retail Market
25 Oct, 2006, Beijing
Beijing’s Wangfujing is ranked as the world’s 20th most expensive shopping destination, according to Main Streets Across the World, an annual report by Cushman & Wakefield, the world’s largest privately held real estate services firm.
Jianguomen in Beijing saw the highest growth in rent with an increase of 14.3% year on year, with rents rising to US$ 160 per square meter a month. In Shanghai, both Huaihai Road and Nanjing Road showed a steady rise, both with an increase of 1.4% year on year.
Sebastian Skiff, Cushman & Wakefield’s Head of Retail in Asia Pacific says “In China, the government has recently approved a significant number of applications by foreign retailers, unlocking the doors for a flood of new retailers entering what is one of the world’s most dynamic emerging markets.”
Richard Middleton, Managing Director of Cushman & Wakefield Greater China says “Over the last year, China has continued its economy surge with retail sales still growing at almost 14%. Despite Government attempts to cool the ecomony, we see no signs of let up in the retail sector in the next few years. Rather, we expect to see even stronger demand from retailers in all sectors leading up to the Olympics, as more international retailers move aggressively into the China market, many for the first time.”
“Beijing has seen the development of a number of new prestigious retail projects over the last year – including China Central Place, New Sanlitun, Xidan Mall - with more than 100,000 sq m of retail space set to open by 2007.” adds Richard Middleton. “These developments are setting new trends in China as they bring a number of flagship stores which will offer a new, unique experience to Chinese customers”
Main Streets Across the World 2006 tracks retail rents in the world’s top 233 shopping locations across 47 countries around the world. The report’s global league table is drawn up by taking the most expensive location in each of the countries monitored, the report finds that retail rents have risen or remained stable in 97 per cent of the locations monitored.
John Strachan, Cushman & Wakefield’s Global Head of Retail, says: “Shopping is a global activity – from the main streets of Buenos Aires, to New York, Paris and New Delhi. Worldwide, the sector has seen a vibrant year, with new store openings, new formats, retailers entering new markets, in particular the emerging markets, and existing schemes being refurbished in more developed markets to cater for evolving consumer and occupier demand.”
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