In The Two Quarter Of Shanghai, Some Shopping Center Rents Will Go Up.

In the two quarter, new supply of non central business district office buildings in Shanghai increased. Strong rental demand also accelerated rent growth.

High end residential sales rebounded strongly.

Jones Lang LaSalle released the review and analysis report of Shanghai's retail real estate and housing market in the second quarter of 2015. It pointed out that in the two quarter, the fast fashion and children's brand expansion in Shanghai's retail real estate market, the core business circle had four new opening projects, and the rent of some mature shopping centers increased in the two quarter.

It is worth noting that, influenced by various factors, luxury brands are developing very cautiously for new projects.

The report points out that in the two quarter of Shanghai, fast fashion and children's brands expanded strongly, such as Forever21's 2 new stores in Shanghai. The brand also plans to open a flagship store in Huaihailu Road, which covers an area of 4300 square meters.

At the same time, the retail brands that attract children's consumption are also accelerating. Disney's flagship store in Lujiazui opened in the two quarter. China's first Lego Exploration Center will also be located in Putuo District's Changfeng square.

Although at present

Generally speaking, the impact of the electricity supplier is huge, but in the two quarter, the core business circle in Shanghai is still opening four new commercial retail projects.

New world big pill department store, Fubang crystal center, Star Plaza and new neighbour life station, with a total construction area of 366000 square meters.

However, the vacancy rate of the core business circle rose slightly to 11.5% in the current quarter. Due to the excessive expectation of some of the owners of the project, the vacancy rate of the newly completed shopping center in the core business circle is slightly higher than the market average level and has increased the overall vacancy rate of the relative business circle.

In addition, due to the introduction of new leisure and entertainment experiential tenants, the vacancy rate of the non core business circle has dropped to 7.5%.

Due to the adjustment of tenants, the rental of some mature Shanghai market shopping centers increased in the two quarter.

In the core business circle, the average rent of the first floor of the shopping center increased by 1.9%, reaching 52.3 yuan per square meter, and the rent of the non core business circle increased by 1.1%, reaching 20.6 yuan per square meter.

Outstanding in core and non core areas

The adjustment of tenants is the main reason for the overall rents of the market.

It is worth noting that in all formats, the development of luxury brands is most prudent.

Due to various reasons such as anti-corruption, sales of luxury brands have been affected. Many luxury brands have been cautious about expanding new stores, and some big brands are adjusting prices.

Following the price adjustment of Chanel in the first quarter of this year, Gucci lowered the unit price of most of its products by 50% in the nationwide discount activities. Its stores in Shanghai attracted a large number of consumers.

Jones Lang LaSalle pointed out that data show that in 2014, 70% of the consumption of luxury goods occurred outside the country.

"It is reported that more luxury brands are considering price adjustment at home to change the habit of consumers buying luxury goods overseas."

Deng Rushun, director of retail real estate in East China, said Jones Lang LaSalle.

Jones Lang LaSalle analyzed and predicted that the competition of Shanghai's non core business circles will intensify in the future. As of the end of 2016, there will be more than 20 non core business circle projects entering the market. At the same time, some commercial projects with poor location and lack of management experience will lose the bargaining power and may face the dilemma of postponing the opening of business.