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Retail Snapshot Q4 2016Beijing
MARKETBEAT
BEIJING RETAIL
Economic Indicators
Prime Average Retail Rents – Q4 2016
Significant Q4 2016 Store Openings
Significant Projects Under Construction
www.dtzcushwake.com
Economy
Local retail sales declined 1.5 percentage points over the first three
quarters of 2016 compared to the previous year, posting 4.8% y-o-y
growth for a total of RMB775.8 billion in transactions. Online retail
sales increased 12% y-o-y to RMB129.9 billion over the same period,
beating the national average by 5.1 percentage points. E-commerce
accounted for 21% share of total retail sales in Q3, we expect that, it
will be higher in Q4 due to the “singles’ day” and “double 12” shopping
events.
Market Overview
New retail supply surged 600,000 sq m in Q4, raising Beijing’s stock to
approximately 12.19 million sq m, of which 82% are shopping centers.
New shopping center openings included: Fengtai Wanda Plaza,
Huaifang Wanda Plaza and Hengtai Plaza in Fengtai District; Green
Fun City Phase 2 in Daxing District and Jingtougang•Changyang in
Fangshan District. However, the stock of department store continue
decreasing in Q4. Ito Yokado Department Store in Shilipu and
Parkson Department Store in Taiyanggong all closed in early
November. Currently, Ito Yokado in Beijing only left two department
stores in Fengtai North Road and Asian Games Village.
The two Wanda Plazas added two landmark buildings for Fengtai
District, which played an import role in improving the commercial value
of this area. In particular, Fengtai Wanda Plaza surrounded by over
3000 enterprise headquarters, and undeveloped lands nearby are all
“Land Kings” of Beijing in recent years. Realizing an asset-light
business model, the opening of Green Fun City Phase 2 provides a
lifestyle center. Jingtougang•Changyang mall located to the south of
Changyang Subway Station realized a seamless connection with the
subway, which is the first TOD (transit-oriented development)
commercial property in Fangshan District developed by Beijing
Infrastructure Investment.
The local retail market achieved its strongest performance all year in
Q4 in terms of sales thanks to a boost from online shopping holidays
like singles’ day. Such mega-sales events not only have become a
critical driver of online retail in China, but also provide a business
opportunity for overseas brands and traditional bricks and mortar
stores to leverage. Retailers also are increasingly realizing an online-
to-offline (O2O) strategy through selling merchandise on their website
for in-store pickup.
Outlook
The majority of new retail projects added in 2016 were located in the
southern part of Beijing outside the 4th Ring Road. Pre-leasing rates
at the new shopping centers have all been above 95% with the
characteristic of "community service". Ahead, we expect more and
more retail projects to become integrated within the community, and to
utilize O2O strategies.
Q2 16 Q3 16Past 12-Month
Growth
GDP Growth 6.7% 6.7%
CPI Growth 1.2% 1.2%
Retail Sales Growth 3.8% 4.8%
RMB/ EURO/ US$/ 12-Month
sq m/mo sf/mo sf/mo Outlook
Wangfujing 800–3,000 10.2–38.4 10.7–40.1
Xidan 1,000–2,400 12.8–30.7 13.4–32.1
CBD 800–3,100 10.2–39.7 10.7–41.4
Sanlitun 1,500–2,500 19.2–32.0 20.1–33.4
Zhongguancun 1,300–1,800 16.6–23.1 17.4–24.1
Exchange Rate: 1 USD = 6.950 CNY = 0.958 EUR as of 23 December 2016
*Average rents (RMB/sq m/mo) are based on ground floor in prime locations in
major shopping centers, excluding management, promotional and other fees.
Building Location Tenant Area (sq m)
Fengtai Wanda Plaza Fengtai Libra KTV 3,500
Beijing SKP CBDGUCCI Flagship
Store1,000
Huaifang Wanda
PlazaFengtai IEV 600
Sanlitun Taikooli Sanlitun Delvaux 377
Source: Beijing Municipal Bureau of Statistics
Building LocationArea
(sq m)
Completion
Date
China World Trade
Centre IIIB (Retail)CBD 70,000 Q2 2017
Wangfu Central Wangfujing 40,000 Q3 2017
KWG MallChong-
wenmen50,000 Q3 2017
Emperor Group
CenterCBD 22,000 Q3 2017
Retail Snapshot Q4 2016MARKETBEAT
Beijing
www.dtzcushwake.com
James ShepherdManaging Director
Research, Greater China
Tel: +86 21 2208 0769
Sean Wang Vice President, Greater China,
Managing Director, North China
Tel: +86 10 8519 8168
Sabrina WeiSenior Associate DirectorHead of North China Research
Tel: +86 10 8519 8087
About Cushman & WakefieldCushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop and live. The firm’s 43,000
employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. In
Greater China, the firm has a co-branded presence under the name of DTZ/Cushman & Wakefield and operates 20 offices in the region. Cushman &
Wakefield is among the largest commercial real estate services firms with revenues of $5 billion across core services of agency leasing, asset services,
capital markets, facility services, global occupier services, investment & asset management, project management, tenant representation and valuation &
advisory. To learn more, please visit www.cushmanwakefield.com or follow us on Weibo/WeChat (DTZ_China).
DisclaimerThis report has been produced by DTZ/Cushman & Wakefield LLP for use by those with an interest in commercial property solely for information purposes. It
is not intended to be a complete description of the markets or developments to which it refers. The report uses information obtained from public sources
which DTZ/Cushman & Wakefield LLP believe to be reliable, but we have not verified such information and cannot guarantee that it is accurate and
complete. No warranty or representation, express or implied, is made as to the accuracy or completeness of any of the information contained herein and
DTZ/Cushman & Wakefield LLP shall not be liable to any reader of this report or any third party in any way whatsoever. All expressions of opinion are subject
to change.
Our prior written consent is required before this report can be reproduced in whole or in part.
© 2017 DTZ/Cushman & Wakefield LLP. All rights reserved.
Contacts
Duke ZhenDirector
General Manager of Retail Services, China
Tel: +86 10 8519 8228
Retail Snapshot Q4 2016Guangzhou
MARKETBEAT
GUANGZHOU RETAIL
Economic Indicators
Prime Average Retail Rents – Q4 2016
Significant Q4 2016 Store Openings
Significant Projects Under Construction
www.dtzcushwake.com
EconomyGuangzhou’s retail sales increased 8.6% y-o-y to RMB640 billion in
Q3, up 0.2 percentage points q-o-q. Guangzhou continued to lead all
Tier-1 cities in terms of sales growth.
Market OverviewDelivery of AMall in late Q3 and igc in Q4 raised prime retail stock to
1.73 million sq m in the city’s core retail hubs. Outside the core areas,
Hopson Plaza announced its opening in Haizhu District.
A number of properties adjusted their tenant mix and carried out
upgrades to boost sales during the end-of-year peak. Malls especially
sought retailers in the apparel and cosmetics trades, as well as
market entrants and tenants offering new retail formats. For example,
La Perle welcomed Ferragamo, Tesla and luxury duty-free store
Attos. Parc Central introduced Abercrombie & Fitch, Sisley, Jorya as
well as Southern China’s first Dyson concept store and Singaporean
high street brand Pedro. Gucci, D&G, Bottega Veneta and Catier
opened new stores in Tai Koo Hui.
Elsewhere, Happy Valley finished a revamp that now includes a new
gym, additional healthy eating options and more personal care
brands. The igc mall announced its soft opening on October 1 with
approximately a 70% occupancy rate.
Significant changes have taken place in Guangzhou’s retail market
over the past several quarters. Retailers accelerated the pace of O2O
integration, rolled out online payment systems and introduced new
delivery services. Mall operators continued to focus on offering retail
experiences and launched marketing activities to appeal to retailers
and consumers. Meanwhile, the market has matured and become
more diverse. New specialty stores have opened, such as Adidas
Women, Nike Running and Nike Air Jordan. Unique and trendy
brands, designer labels and boutiques have flourished.
Guangzhou’s average retail rents fell 4.9% q-o-q to RMB1,266.6 per
sq m per month in Q4 on new supply and ongoing adjustments in
some existing malls. The overall vacancy rate across the city’s core
retail hubs climbed 6.8 percentage points q-o-q to 14.5% in Q4.
OutlookBricks-and-mortar retailers have responded well to the threat of e-
commerce and amid a sluggish economy. Looking to 2017, we
anticipate an acceleration of retail absorption and overall stable
average rents in core retail hubs of Guangzhou.
Q2 16 Q3 16 Past 12-Month
Growth
GDP Growth 8.0% 8.1%
CPI Growth 2.6% 2.6%
Retail Sales Growth 8.4% 8.6%
RMB* EUR US$ 12-Month
sq m/mo sf/mo sf/mo Outlook
Tianhe Sports Center 1,699.3 21.8 22.7
Zhujiang New Town 556.1 7.1 7.4
Yuexiu 1,000.3 12.8 13.4
Guangzhou 1,266.6 16.2 16.9
Exchange Rate: 1 USD = 6.950 CNY = 0.958 EUR as at 23 December 2016
*Average rents (RMB/sq m/mo) are based on the ground floor in prime locations
in major shopping centers, excluding management fee, promotional fee and other
fees.
Building Location TenantArea
(sq m)
Tai Koo Hui Tianhe Sports Center Gucci 557
Tai Koo Hui Tianhe Sports Center Dolce & Gabbana 300
Parc Central Tianhe Sports Center Palace Cinemas 3,000
igc Zhujiang New Town Apple Store 1,190
igc Zhujiang New Town Palace Cinemas 5,000
Source: Guangzhou Municipal Bureau of Statistics
Building LocationArea
(sq m)
Completion
Date
Way World Tianhe Coach Terminal 100,000 2017
K11 Zhujiang New Town 70,000 2017
Aeon Mall Jinshazhou Baiyun 93,000 2018
Retail Snapshot Q4 2016MARKETBEAT
www.cushmanwakefield.com
Guangzhou
James ShepherdManaging Director
Research, Greater China
Tel: +86 21 2208 0769
About Cushman & WakefieldCushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop and live. The firm’s 43,000
employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. In
Greater China, the firm has a co-branded presence under the name of DTZ/Cushman & Wakefield and operates 20 offices in the region. Cushman &
Wakefield is among the largest commercial real estate services firms with revenues of $5 billion across core services of agency leasing, asset services,
capital markets, facility services, global occupier services, investment & asset management, project management, tenant representation and valuation &
advisory. To learn more, please visit www.dtzcushwake.com or follow us on Weibo/WeChat (DTZ_China).
DisclaimerThis report has been produced by DTZ/Cushman & Wakefield for use by those with an interest in commercial property solely for information purposes. It is
not intended to be a complete description of the markets or developments to which it refers. The report uses information obtained from public sources which
DTZ/Cushman & Wakefield believe to be reliable, but we have not verified such information and cannot guarantee that it is accurate and complete. No
warranty or representation, express or implied, is made as to the accuracy or completeness of any of the information contained herein and DTZ/Cushman &
Wakefield shall not be liable to any reader of this report or any third party in any way whatsoever. DTZ/Cushman & Wakefield shall not be held responsible
for and shall be released and held harmless from any decision made together with any risks associated with such decision in reliance upon any expression of
opinion in the report. Our prior written consent is required before this report can be reproduced in whole or in part.
© 2017 DTZ/Cushman & Wakefield All rights reserved.
Contact
Duke ZhenDirector
General Manager of Retail Services, China
Tel: +86 10 8519 8228
Kelvin LiManaging Director, Central China
General Manager,
Guangzhou & ZhengzhouTel: +86 20 8510 8138
Coco LinAssociate Director
Head of Central China Research
Tel: +86 20 8510 8209
Retail Snapshot Q4 2016Shanghai
MARKETBEAT
SHANGHAI RETAIL
Economic Indicators
Prime Average Retail Rents – Q4 2016
Significant Q4 2016 Store Openings
Significant Projects Under Construction
www.cushmanwakefield.com
Q2 16 Q3 16
Past 12-
Month
Growth
GDP Growth 6.7% 6.7%
CPI Growth 3.1% 3.2%
Total Retail Sales Growth 7.6% 7.9%
EconomyShanghai’s GDP increased 6.7% y-o-y to reach RMB1.95 trillion
through the first three quarters. Over the same period, the city’s
retail sales picked up 7.9% y-o-y to total RMB802.46 billion.
Market OverviewNew supply included the opening of Bailian Shiji Mall and Infinitus
Hui, raising stock across Shanghai’s five retail hubs to 2.35 million
sq m. Prime retail rents decreased 0.3% q-o-q to average RMB1,909
per sq m per month at the end of Q4. Thanks to high net absorption
at new projects, the occupancy rate held at 94.6% in Q4.
With a prime location at the intersection of four subway lines, Bailian
Shiji Mall is set to be a one-stop shopping center in Pudong. The
launch of Infinitus Hui offers another lifestyle-oriented shopping
center for Shanghai. Meanwhile, renovation work finished at No. 1
Yaohan. The revamped department store now features improved
facilities, more F&B tenants and additional entertainment options.
The flood of new supply to hit the market also included Vanke Mall,
Macrolink Shopping Center, Longfor Paradise Walk and Hall of The
Moon. As developers deepen their footprint in suburban areas, new
retail hubs are emerging. Hongqiao CBD, for example, boasts
around 340,000 sq m of retail stock. Notable retailers have opened
new stores in decentralized areas as well. For example, Apple
expanded to its seventh location in Qibao Vanke Mall, while high-
end supermarket Bravo YH opened in Hongqiao Paradise Walk.
Alibaba’s record-setting “singles’ day” again showed the power of
online retail for driving sales. Bricks-and-mortar stores piggybacked
on the popular shopping holiday by holding their own promotions.
Meanwhile, O2O platforms continued to be rolled out, with traditional
retailers utilizing big data, in-store technology and hotspots to
connect with consumers. Retailers also increasingly have leveraged
online social platforms popular among young Internet users. Uncle
Tongdao, Line Friends and Kumamon Café have opened or said
they plan to open a retail location in Shanghai over the last year.
OutlookThough the market received considerable new supply this year,
pressure from a slowing Chinese economy and fierce competition
have caused delays at a number of retail projects. Decentralization
should be an ongoing trend that will create new shopping districts. At
the same time, Shanghai will continue to attract new entrants, such
as UK clothing retailer Topshop in 2017.
RMB* EURO US$ Q-O-Q 12-Month
sq m/mo sf/mo sf/mo Change Outlook
Nanjing East Rd 1,983 25.39 26.51 0.0%
Nanjing West Rd 2,425 31.05 32.42 -0.9%
Huaihai Middle Rd 1,600 20.49 21.39 0.7%
Xujiahui 2,239 28.67 29.93 0.0%
Lujiazui 1,664 21.31 22.24 0.1%
Note: 1 USD = 6.950 RMB = 0.958 EUR as of 23 December 2016
* Rent equals “First floor asking rent”
Building Location Tenant Area
No. 666 Huaihai
RdHuaihai Middle Rd
Line Friends
Café & Store800 sq m
Rich Gate Huaihai Middle Rd DJI 500 sq m
Kerry Centre
IFC
Nanjing West Rd
LujiazuiLululemon
200 sq m
N/A
N/A Lujiazui Taco Bell N/A
Vanke Mall Other Apple Store 1,200 sq m
Source: Statistics Bureau for Shanghai
Building Location AreaCompletion
Date
HKRI Taikoo Hui Nanjing West Rd 100,000 sq m 2017
Harbour City Lujiazui 138,000 sq m 2017
Century Link Lujiazui 140,000 sq m 2017
Retail Snapshot Q4 2016MARKETBEAT
www.cushmanwakefield.com
Shanghai
Keith LawDirector, Retail Services, East China
Tel: +86 21 2208 0225
Shaun BrodieHead of China Strategy Research
Tel: +86 21 2208 0529
Mimie LauManaging Director, East China
Tel: +86 21 2208 0100
About Cushman & WakefieldCushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop and live. The firm’s 43,000
employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. In
Greater China, the firm has a co-branded presence under the name of DTZ/Cushman & Wakefield and operates 20 offices in the region. Cushman &
Wakefield is among the largest commercial real estate services firms with revenues of $5 billion across core services of agency leasing, asset services,
capital markets, facility services, global occupier services, investment & asset management, project management, tenant representation and valuation &
advisory. To learn more, please visit www.cushmanwakefield.com or follow us on Weibo/WeChat (DTZ_China).
DisclaimerThis report has been produced by DTZ/Cushman & Wakefield LLP for use by those with an interest in commercial property solely for information purposes. It
is not intended to be a complete description of the markets or developments to which it refers. The report uses information obtained from public sources
which DTZ/Cushman & Wakefield LLP believe to be reliable, but we have not verified such information and cannot guarantee that it is accurate and complete.
No warranty or representation, express or implied, is made as to the accuracy or completeness of any of the information contained herein and DTZ/Cushman
& Wakefield LLP shall not be liable to any reader of this report or any third party in any way whatsoever. All expressions of opinion are subject to change.
Our prior written consent is required before this report can be reproduced in whole or in part.
© 2017 DTZ/Cushman & Wakefield LLP. All rights reserved.
Contact
James ShepherdManaging Director, Research, Greater China
Tel: +86 21 2208 0769
Retail Snapshot Q4 2016Shenzhen
MARKETBEAT
SHENZHEN RETAIL
Economic Indicators
Prime Average Retail Rents – Q4 2016
Significant Q4 2016 Store Openings
Significant Projects Under Construction
www.dtzcushwake.com
EconomyShenzhen’s retail sales reached RMB397.9 billion in first three quarters,
up 7.8% y-o-y. The city’s CPI cooled 0.2 percentage points q-o-q to 2.4%.
Market OverviewNo new retail supply was added in Q4. Retailers remained conservative in
opening stores, while prospective tenants attempted to gain fit-out costs
and extended rent-free periods from landlords. As leasing negotiations
dragged on, new shopping mall launches were pushed back.
Large-scale restaurants were faced with tremendous operating difficulties
resulting from rising costs and falling demand for corporate banquet
events. However, medium-sized F&B operators and casual diner chains
rapidly expanded, drawing business mainly from professional workers. For
example, Element Fresh opened a new store in Wongtee Plaza and
Heekcaa was accelerating its expansion.
Elsewhere, boutique shopping marts have been becoming increasingly
popular and in some cases replacing big-box supermarkets. For example,
Bravo YH will take over Aeon’s space at Coco Park upon lease expiration.
Other retail trades, such as leisure & recreation and health, have been
flourishing as consumers pay increasing attention to quality of life. Movie
theatres also have a good market prospect. However, fitness centers are
facing fierce competition, with some poorly-operated facilities being
especially vulnerable to closure.
Shenzhen retail rents remained largely stable in Q4, rising 1.2% q-o-q to
average RMB912.61 per sq m per month. Luohu led the way at a 2.1% q-
o-q average increase thanks to the introduction of stronger tenants. In
Bao’an, average rents slid back 3.1% q-o-q due to weaker demand as
newly added projects are in the early stages of materializing. The city’s
vacancy levels edged down to 3.1%, from 3.5% the previous quarter.
OutlookShenzhen is set to receive nearly 1.6 million sq m of new retail supply in
2017. Amid a sluggish economy, there will be downward pressure on
rents.
Shopping malls that can innovate and provide a rich user experience will
dominate the market. Compared with e-commerce, traditional retail
maintains advantages such as an enjoyable shopping environment, quality
service and after-sale guarantees. Unique and innovative building design
is a good way to add value for shopping malls and attract customers.
Q2 16 Q3 16Past 12-Month
Growth
GDP Growth 8.6% 8.7%
CPI Growth 2.6% 2.4%
Retail Sales Growth 8.1% 7.8%
RMB* EURO US$ Q-O-Q 12-Month
sq m/mo sf/mo sf/mo Change Outlook
Luohu 1,616.67 20.70 21.61 2.11%
Futian 906.25 11.61 12.11 1.40%
Nanshan 892.86 11.43 11.94 1.63%
Bao’an 513.33 6.57 6.86 -3.14%
Longgang 550.00 7.04 7.35 0.00%
Exchange Rate: 1 USD = 6.95 CNY = 0.958 EUR as at 23 December 2016
*Average rents (RMB/sq m/mo) are based on ground floor in prime locations in major shopping
centers, excluding management fee, promotional fee and other fees.
Building Location Tenant Area (sq m)
City Plaza Futian Xiaomi Fans Club 260
Central Walk Futian Uniqlo 800
Wongtee Plaza Futian Element Fresh 230
Coco Park Futian Bravo YH 4,000
Source: Statistics Bureau of Shenzhen Municipality
Building LocationArea
(sq m)
Completion
Date
Q City Bao’an 120,000 2018
Shenzhen Unitown Longhua 180,000 2018
All City Nanshan 60,000 2018
MixC Qianhai Nanshan 80,000 2018
Retail Snapshot Q4 2016MARKETBEAT
www.cushmanwakefield.com
Shenzhen
James ShepherdManaging Director
Research, Greater China
Tel: +86 21 2208 0769
Cheng Jia-longManaging Director
South & West China
Tel: +86 755 2151 8188
Zhang Xiao-duanDirectorHead of South & West China Research
Tel: +86 755 2151 8116
About Cushman & WakefieldCushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop and live. The firm’s 43,000
employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. In
Greater China, the firm has a co-branded presence under the name of DTZ/Cushman & Wakefield and operates 20 offices in the region. Cushman &
Wakefield is among the largest commercial real estate services firms with revenues of $5 billion across core services of agency leasing, asset services,
capital markets, facility services, global occupier services, investment & asset management, project management, tenant representation and valuation &
advisory. To learn more, please visit www.dtzcushwake.com or follow us on Weibo/WeChat (DTZ_China).
DisclaimerThis report has been produced by DTZ/Cushman & Wakefield for use by those with an interest in commercial property solely for information purposes. It is
not intended to be a complete description of the markets or developments to which it refers. The report uses information obtained from public sources which
DTZ/Cushman & Wakefield believe to be reliable, but we have not verified such information and cannot guarantee that it is accurate and complete. No
warranty or representation, express or implied, is made as to the accuracy or completeness of any of the information contained herein and DTZ/Cushman &
Wakefield shall not be liable to any reader of this report or any third party in any way whatsoever. DTZ/Cushman & Wakefield shall not be held responsible
for and shall be released and held harmless from any decision made together with any risks associated with such decision in reliance upon any expression of
opinion in the report. Our prior written consent is required before this report can be reproduced in whole or in part.
© 2017 DTZ/Cushman & Wakefield All rights reserved.
Contact
Duke ZhenDirector
General Manager of Retail Services, China
Tel: +86 10 8519 8228
Retail Snapshot Q4 2016Hong Kong
MARKETBEAT
Economic Indicators
High Street Average Rents – Q4 2016
Vacancy in High Street
Highlight of Q4 2016 Store Openings
www.cushmanwakefield.com
Kevin LamExecutive Director
Head of Business Space, Hong Kong
16/F, Jardine House, Central, Hong Kong
Tel: +852 2507 0507
Catherine BaiManager
Hong Kong Research
16/F, Jardine House, Central, Hong Kong
Tel: +852 2507 0507
James ShepherdManaging Director
Research, Greater China
1366 Nanjing West Road, Shanghai
Tel: +86 21 2208 0769
EconomyThird quarter GDP increased 1.9% y-o-y in Hong Kong. Private
consumption growth also picked up 1.2% y-o-y in Q3, suggesting
stable market sentiment.
Market OverviewAlthough the retail market weathered another down year with weak
leasing demand, the decline in rentals slowed in 2016 compared to
2015 and flattened in Q4. The city’s four major high street shopping
areas saw rents fall approximately 13% on average over the last 12
months compared to as much as a 34% y-o-y drop along prime
streets in Causeway Bay in 2015. The turnaround suggests the
rental correction is near complete.
Decentralized residential areas drew interest from retailers and
investors. Average rents in Tuen Mun, for example, grew 7.1% y-o-y,
indicating strong local demand. Sales and purchases of
decentralized retail properties also were active as investors and end-
users scooped up discounted properties. More than 300 sales
transactions were recorded in 2016, over 90% of which were under
HK$100M.
F&B establishments were a bright spot in 2016. In particular, fast
food shops achieved 6.5% y-o-y growth in restaurant receipts
through the first three quarters. Other types of retailers, especially
those selling luxury and electrical goods, suffered a further decline in
sales of up to 23% y-o-y through the first 10 months of the year.
OutlookDespite the city’s retail slump, Cushman & Wakefield’s recently
released Main Street Across the World 2016 ranked Causeway Bay
the most expensive high street in Asia Pacific and the second most
expensive high street globally.
Ahead to 2017, major high street shopping area rents are expected
to stay at current levels provided that retailer expansion plans
remain limited. Further rental growth in decentralized residential
areas also is forecasted.
Q2 16 Q3 1612-Month
Outlook
GDP Growth 1.7% 1.9%
CPI Growth 2.4% 1.2%
Private Consumption Growth 0.5% 1.2%*
Unemployment Rate 3.4% 3.3%
HKD
/sf/mo
EUR
/sf/mo
US$
/sf/moQ-O-Q
12-Month
Outlook
Causeway Bay $1,799 € 221.9 US$231.7 -1.1%
Tsimshatsui $1,685 € 207.9 US$217.1 -0.5%
Central $1,003 € 123.7 US$129.2 -1.5%
Mongkok $549 € 67.7 US$70.7 -0.9%
Note: US$/HK$ = 7.763; €/HK$ = 8.106 as at 23 December 2016
Q3 16 Q4 16No. of Vacant
Shops Q4 16
Causeway Bay 0.0% 0.0% 0
Tsimshatsui 2.4% 2.4% 2
Central 4.3% 4.3% 3
Mongkok 13.2% 9.4% 5
Source: Census and Statistics Department, y-o-y changes * preliminary figure
Location TradeSize
(Saleable)
Unit
Rental
G/F, Grancastle Commercial
Centre, 2T Sai Yeung Choi Street
South, Mongkok
Cosmetics 1,070 sf HK$710
Shop 3A, G/F, Hanley House, 68-
80 Canton Road, TsimshatsuiCosmetics 781 sf HK$1,088
Shop G08 on G/F, Ginza Plaza,
2A Sai Yeung Choi Street South,
Mongkok
Cosmetics 600 sf HK$833
HONG KONG RETAIL
Retail Snapshot Q4 2016MARKETBEAT
www.cushmanwakefield.com
Hong Kong
About Cushman & WakefieldCushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop and live. The firm’s 43,000
employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. In
Greater China, the firm has a co-branded presence under the name of DTZ/Cushman & Wakefield and operates 20 offices in the region. Cushman &
Wakefield is among the largest commercial real estate services firms with revenues of $5 billion across core services of agency leasing, asset services,
capital markets, facility services, global occupier services, investment & asset management, project management, tenant representation and valuation &
advisory. To learn more, please visit www.cushmanwakefield.com or follow us on Weibo/WeChat (DTZ_China).
DisclaimerThis report has been produced by DTZ/Cushman & Wakefield for use by those with an interest in commercial property solely for information purposes. It
is not intended to be a complete description of the markets or developments to which it refers. The report uses information obtained from public sources
which DTZ/Cushman & Wakefield believe to be reliable, but we have not verified such information and cannot guarantee that it is accurate and complete.
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Retail Snapshot Q4 2016Taipei
MARKETBEAT
TAIPEI RETAIL
Economic Indicators
Prime Average Retail Rents – Q4 2016
Significant Q4 2016 Store Openings
Significant Projects Under Construction
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EconomyRetail sales increased 1.8% y-o-y to NT$995.2 billion (US$30.96
billion) through the first 10 months of the year. Supermarket sales
led the way by category at a 9.1% y-o-y pickup, followed by retail
warehouses at 5.3% y-o-y growth. Department store sales increased
5.1% y-o-y with the help of mid-year sales promotions.
Market OverviewThe vacancy rate fell across Taipei’s major retail hubs save for a
slight increase in the Taipei Railway Station hub. Available space in
Zhongxiao tightened to 4.1% at the end of Q4 thanks to take-up by
several small storefronts and the flagship opening of The Body Shop
and The Face Shop.
The vacancy rate in the Zhongshan/Nanjing hub edged down to
5.5% in Q4, while on the other hand some boutique stores gradually
withdraw in the luxury goods retail area around Regent Taipei. At the
same time, SOGO Fuxing Store added a Louis Vuitton counter and
expanded the boutique area to three floors.
In Ximen, H&M held the grand opening of its largest Asian flagship
store, which spans five floors and contains approximately 1,500
pings of retail space. Meanwhile, the former China Trust
Headquarter (A7 block) in Xinyi, was demolished. A container food
court has sprung up on the 2,000-ping site, and now features 30
eateries including American, European and Hong Kong restaurants.
Elsewhere, Taipei’s major retail hubs have increasingly welcomed
Korean cosmetics brands, such as Innisfree, Banila Co, Too Cool
For School and Memebox. But challenges face traditional bookstore
operators on Chongqing S. Road due to the popularity of online
retail and e-books.
OutlookRental level in the Zhongxiao hub face downward pressure ahead.
The relatively higher-rent area has been tough on some retailers,
leading to closures, especially of large stores.
There is expected to be a boost in retail at commuting hubs in Taipei
Railway Station as part of a redevelopment of west Taipei.
An underground passage connect Taipei Railway Station and Airport
MRT Station is scheduled to open in early 2017, and is expected to
draw larger commuting crowds into the station.
Q2 16 Q3 16Past 12-Month
Growth
GDP Growth 1.1% 2.0%
CPI Growth 1.3% 0.7%
Vacancy Rental Range Rental Range 12-Month
Rate (NT$/ping/mo) (US$/sq ft/mo) Outlook
Zhongxiao 4.1% 15,000–21,000 13.1–18.4
Taipei Railway
Station5.2% 9,000–13,000 7.9–11.4
Zhongshan/
Nanjing5.5% 8,000–13,000 7.0–11.4
Ximen 1.2% 15,000–20,000 13.1–17.5
Note: Only street front shops are taken into account. All data are based on gross floor area
unless otherwise specified. Rentals are exclusive of management fees and other outgoings. 1
ping = 35.58 sq ft = 3.3 sq m
Note: NT$/US$ 32.147; NT$/ € = 33.57 as at 23 December 2016
Retail Hub Section TenantArea
(ping)
Zhongxiao Sec 4, Zhongxiao E. Rd.T.K.K Fried
Chicken60.4
Zhongxiao Sec 4, Zhongxiao E. Rd. The Face Shop 28.4
Ximen Xining S. Rd. Asics 30.0
Source: Department of Statistics, Ministry of Economic Affairs
Project Name District Opening DateGFA
(ping)
ATT 4 FUNZhongshan Dist.,
Taipei City
Q3 2017-
Sales of General Merchandise
Jan–Oct 2015 Jan–Oct 2016
Sales of General Merchandise
(NT$bn)948.1 995.2
Source: Directorate-General of Budget, Accounting and Statistics
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Retail Snapshot Q4 2016MARKETBEAT
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Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Taipei
James ShepherdManaging Director
Research, Greater China
Tel: +86 21 2208 0769
Billy YenManaging Director
Head of Taiwan
Tel: +886 2 8788 3288
Wendy HsuehDirector
Head of Consulting and Research Taiwan
Tel: +886 2 8788 3288
Contacts
Charlie YangDirector
Head of Valuation & Advisory Services Taiwan
Tel: +886 2 8788 3288