Robert McKellar take on China’s retail market
In recent news article from China Daily Europe (“Hong Kong company’s mainland ambition soar), it is reported that the Hong Kong developer, Swire properties Ltd aimed to increase its business portfolio by a third this year. “Though most of Swire Properties’ projects on the mainland are mixed-use complexes consisting of office, retail and hotel, Christopher Pratt, chairman of Swire Pacific Ltd, the parent company, says retail was the sector in which the company excelled.”
On a similar note, Robert McKellar, CEO of Savills Asia Pacific commented that China’s retail market will remain bullish given the country’s urbanization. "I don’t think there is much risk in the market so far, though there a growing number of property developers (are entering) the market." says Robert.
“Research by Savills puts the average yearly supply of shopping malls in Beijing and Shanghai at 750,000 square meters between 2011 and 2013. Rental growth in retail in first-tier cities is much better than in second tier cities.”