Wuhan Retail Q3/2021 (Savills)

• In Q3/2021, Wuhan’s retail property market saw no new supply and witnessed the closing of Hanjie Wanda Plaza in Zhongnan Zhongbei Road, which will be transformed into an SKP by Wanda Group and Beijing Hualian Group. The citywide retail property stock decreased to 6.64 million sq m by the end of Q3/2021.
• Upgraded stock projects brought several central China first stores, especially in the luxury retail sector.
• Driven by capital investments, popular F&B brands expanded vigorously. Several coffee and bakery brands opened their first stores during the quarter.
• Due to the tenant adjustments in current projects, the citywide vacancy rate decreased 1.0 percentage point (ppt) to 8.1% quarter-on-quarter (QoQ). The prime area’s leasing performance took the lead, with its vacancy rate falling 1.8 ppts to 9.3% QoQ.
• The average rent for the ground floor of citywide shopping malls rose to RMB 308.2 per month per sq m, with the rental index moving up 0.7% QoQ and 0.3% year-on-year (YoY).
• In Q4/2021, Wuhan’s retail property market will see the delivery of Huafa & City Hub, Wuhan Joy City, Wanda Plaza (Hanyang) and Vanke Future Centre, adding over 450,000 sq m new supply to the market.

This article was originally published in https://en.savills.com.cn/