HONG KONG SAR - Media OutReach Newswire - 29 September 2025 - Cushman & Wakefield, a leading global real estate services firm, today released its annual Greater China Retail Supply/Demand Trends report. According to the report, by Q2 2025, the total prime retail property stock in the core markets of the 15 major cities we track in Greater China reached 116.7 million sq m. During the past year, supported by "boosting consumption" measures, the Chinese mainland's retail market demonstrated strong resilience. However, influenced by subdued consumer confidence and project upgrading efforts, the overall average vacancy rate across the 15 major cities rose 0.4 percentage points year-on-year to 11.1% in Q2 2025. The supply/demand rundown for 17 city core area-level markets in Greater China (Q2 2025)Source: Cushman & Wakefield ResearchDuke Zhen, Managing Director, Head of Retail Services, China, Cushman & Wakefield, said, "With policy stimulus, the consumption environment improved marginally in the first half of 2025, reflected in both the recovery of consumer confidence and the accelerating growth of total retail sales of consumer goods on a quarter-on-quarter basis. Driven by emotional consumption and the increasing importance of quality–price ratio, the Chinese consumer market has become more diverse and dynamic, exhibiting renewed vitality." Shaun Brodie, Head of Greater China Research Content, Cushman & Wakefield said, "Since the start of this year, a series of supportive policies have continued to stimulate consumption, driving steady growth in the Chinese consumer market. To meet increasingly diverse and personalized consumer demands, the retail sector has been actively introducing new business models, consumption scenarios, service offerings, and retail formats." Retailers and shopping center landlords are responding with a renewed focus on customer experience, introducing new technologies, and experimenting with innovative retail formats. In terms of supply and demand, several key trends stand out in 2025:

• Renovation and upgrading of existing properties;
• Integration of cultural and tourism consumption;
• The rise of pop toys as part of emotional consumption;
• Strong growth in health-related consumption.

While slower economic growth and uncertain disposable incomes are likely to temper household spending, ongoing government measures to stimulate consumption — together with the success of new retail concepts and formats — are expected to support steady momentum. The outlook for Greater China's retail property market remains positive, with policy support, changing consumer preferences, and innovative supply all converging to drive sustainable long-term growth. Beijing By the end of H1 2025, the total stock in Beijing's retail property market reached 18.7 million sq m, of which 16.9 million sq m was accounted for by shopping centers. Despite pressures from an economic slowdown and consumption downgrading, the market broadly maintained stability over the past year. Average asking rents stood at RMB2,130 per sq m per month, while the vacancy rate edged down to 10.5%. To adapt to shifting consumer sentiment, malls have actively renewed and upgraded their tenant mixes, aiming to attract footfall, enhance customer loyalty, and align with changing demands. The strategy has helped mitigate operational challenges faced by both projects and retail brands. Looking ahead, approximately 500,000 sq m of new supply is scheduled to enter the market in H2 2025. This pipeline is concentrated in suburban developments and urban renewal projects across traditional submarkets, which will further diversify Beijing's retail landscape. In parallel, Beijing has rolled out a series of supportive policies to stimulate consumption. A new policy issued in June emphasizes upgrading traditional submarkets and malls, fostering innovative consumption scenarios, promoting the introduction of brand first stores, and providing targeted support for China-Chic brands and time-honored domestic brands. Together, these measures are expected to reinforce market confidence and unlock new consumption potential in the capital. Shanghai In the past year, 1.61 million sq m of new retail space was added to the Shanghai market, bringing the total stock of mid- to high-end shopping centers to approximately 25.0 million sq m. The influx of new supply in H2 2024 and H1 2025 placed pressure on market fundamentals. The overall vacancy rate for mid- to high-end retail properties edged up 0.2 percentage points year-on-year to 9.5%, while the average first-floor asking rent fell 4.2% year-on-year to RMB728.7 per sq m per month. The rental decline was primarily driven by competitive pricing at newly launched suburban projects. This heightened level of supply has intensified intra-market competition. Many aging retail properties are responding by repositioning their projects, upgrading brand mixes,...