APAC retail markets focus on local consumers in 2024

With international tourist numbers still recovering, project innovation became key to growth.

Retail markets in the Asia-Pacific region leaned heavily on local consumers in 2024 as retailers introduced more diverse shopping options and enhanced customer experiences, according to Savills' Asia Pacific 2H/2024 Retail Spotlight.

With international tourist numbers still recovering, project innovation became key to growth.

In Chengdu, local consumption rose by a modest 2.2% through the third quarter of 2024 (Q3 2024), yet the city’s retail sector grew by launching innovative, non-traditional projects to attract shoppers. Whilst most mall stock remains concentrated in urban cores, suburban districts dominated new developments, adding 260,000 sq m of retail space in 2024.

In Beijing, retail growth focused on upgrading malls and introducing diverse formats as the city worked to establish itself as an international consumption hub.

Meanwhile, retail markets in Metro Manila thrived in 2024, fuelled by a diverse consumer base and growing demand for both global and local brands. This momentum led to the expansion of established shopping hubs and the development of new retail centers. Average mall lease rates ranged from $19 to $31 (PHP 1,150 to PHP 1,850) per sq m per month, with Quezon City and the Bay Area standing out. Quezon City achieved a remarkable 97% occupancy rate, reflecting the sector’s robust performance.

Moreover, Taiwan’s retail market also benefitted from its strong tech-driven economy, posting a 4.1% year-on-year sales increase through Q3 2024. However, the absence of international tourists still posed a challenge. The success of eight major shopping centers opening in 2025 will depend on consumer engagement and efficiency as the market continues to recover.