Entering the Rmbox Mall in Wangjing, one of Beijing’s largestcommunities in its northeast suburb, the first-time shopper to thefour-storey, 110,000-squaremeter shopping center might doubt themall is even open for business. A majority of the nearly 100 storefronts are dark and vacant with “For Lease” ads draped across eachspace. Stores that are open have more shopping assistants thancustomers perusing the shelves. “Business has been bad since it opened in 2008,” said Wang Wei, aresident living nearby. Diamond False Eyelashes
In the past three years, three malls have sprung up within half akilometer of Wang’s neighborhood. The three shopping malls have acombined floor space of 1 million square meters, equivalent to 40American football fields. Shopper attendance in that time, however,has been substantially less than fan totals at the China FootballAssociation Super League. The oversupply of mall space in Wangjingis part of the construction fever that has hit most of China’surban centers. China was the most active retail property market, according to areport by the Londonbased commercial real estate advisor CBRE Ltd.,compared to the 70 countries it surveyed. Flare Eyelash Extensions Manufacturer
Chinese cities will continue to dominate development activity overthe next few years. Eight out of the top 10 most active marketsglobally are in China. North China’s Tianjin Municipality heads thelist with 2.4 million square meters currently under construction,followed by Shenyang, capital of northeast China’ Liaoning Provinceand Chengdu, capital of southwest China’s Sichuan Province. Too many Indeed in many Chinese cities growth of retail property stock hasincreased much faster than the retail outlets themselves, causing”oversupply” to become an overarching theme in a number of markets,said James Hawkey, Executive Consultant, of Cushman &Wakefield, China, a real estate service firm based in the UnitedStates. Handmade False Eyelashes Manufacturer
A report from Knight Frank LLP, an independent global propertyconsultancy based in the UK, showed that annual gross rental yieldson commercial properties in major cities such as Beijing andShanghai have fallen to 4-6 percent from around 10 percent severalyears ago. Commercial properties in Beijing and Shanghai are now generatingannual gross rental returns below China’s official oneyear lendingrate of 6.56 percent. That means if investors borrow and ploughthat money into commercial property, they stand to lose because thereturns won’t even cover the borrowing cost. The report stated that while investors are predominantly focused onChina’s first-tier cities like Beijing and Shanghai, their interestin second- and third-tier, and even smaller cities, has beensteadily growing.
Huizhou, a small city in southeast coastal Guangdong Province, hasa total area of 600,000 square meters of shopping malls. Given its total population of 1.15 million, every two residentscould share one square meter of shopping mall. Guangzhou-based Southern Metropolis Daily reported that business in most of the shopping malls in Huizhou isflat.