Beijing's retail market shows signs of steady development
Retail supply rose 16% in 2022 compared to last year.
Despite the tremendous pressure the retail market in Beijing faced due to successive epidemic waves, the continued entry of supply still presented a good indicator of the market’s potential and steady development, Savills said in a report.
Retail property supply in China’s capital city rose 16% to 550,000 sqm in 2022 compared to last year, the report stated.
“As the covid zero policy is lifted and there is more ease in travel, the retail market is expected to see a better economy and a revival of consumption in 2023. Beijing will welcome a new peak of supply with 13 projects entering the market, and the overall supply is expected to reach a million sqm,” Savills said.
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New projects are positioned evenly in all prime, subprime, and suburban areas to further optimise the market environment, whilst the government continues to support the establishment of Beijing into an international consumption city to boost consumption, Savills noted.
Total retail sales of commercial goods in Beijing declined 6.3% YoY to $187.22b (RMB1.27t) in the first 11 months of 2022. General retail and food and beverage sales dropped 5.8% YoY and 12.8% YoY, respectively, Savills noted.
As new COVID-19 cases escalated, local authorities ramped up control and restrictions toward the end of 2022, dampening consumption demand, the report noted.
“The retail market nevertheless began to recover by late December as the epidemic situation stabilised and the government pushed for further policies to aid shopping mall campaigns and drive consumption,” Savills said.