As inflation is serious and residential investment is restricted by housing purchasing restriction and loan restriction policies, more and more investors begin to invest in retail shops with potential. Relevant study shows that, generally, investment cost of a retail shop can be recovered in about 8 years after investment. Then annual earning rate of such retail shop due to leasing can reach 8%. Such rate of some retails shops with good locations even can be above 16%. Therefore, retail shops are invested by more and more wise people and Chengdu’s retail shops are becoming more and more popular.
According to relevant statistics, from January 31 to February 6, 2014, 9 enterprises including Wangfujing Department Store, Far Eastern Department Store, Moore Department Store, MOI Department Store, Gome Electrical Appliances, Ren Ren Le, Auchan, Carrefour realized a sales volume of 440 million yuan, growing by 5.7% on the year-on-year basis. Thus it shows Chengdu citizens’ strong power of consumption.
Property Developers Accelerate Property Offering While More Opportunities are provided for Retail Shop Investment
In 2013, Chunxi Village, IFS, Kowloon New Town, CRCC Ruicheng Mansion, Taiye Chengbei Plaza, Jinke Center, CSC Tongzilin No.1, New Century Global Center and Longfor Paradise Walk were offered successively, attracting attention of a large number of clients. In addition, Sino-Ocean Taikoo Li, The One, Daye Building, Fortune Plaza and other projects will enter the market according to the plan.
Rising Retail Shop Supply and Booming Market
On December 4, 2013, 2013 West China Commercial Real Estate Industry Development Forum was held in Chengdu. It was called as Oscar of West China commercial real estate industry and covered 12 provincial districts of West China. 300 business companies and 500 elites from the commercial real estate industry gathered there. As the most attractive item, announcement and awarding of commercial real estate annual value list can be said as the grandest “Oscar” in commercial real estate industry.
[Part of Winners]
2013’s Commercial blocks with the most investment value in West China Zhixifang, Hyatt Place, Sincere Center, Eastern Suburb Memory, Chinatown, So Good World, Zijing Meixi Plaza, BRC COCO Red Street, Playing Street, Hutchison Whampoa Le Parc Xinjieli, Shenxianshu Colorful
2013’s most influential projects in commercial real estate industry in West China Jinniu Civic Center, Shoe Center Outlets, China (Chengdu) Fashion Center, Leshan Leather City, Shengfeng International Agricultural-commercial Center, Chengdu American City, Celebrity Hotel
2013’s projects with the most invest value in commercial real estate industry in West China Shangfenggang Times Plaza, Kowloon New Town, Zhonghang Celebrity Hotel, Qingyang Headquarter, Feiyue Xicheng Plaza, Feida Plaza-The One, OCT Center, Jiangyu Tianfu City, Jinyu Shengshi Tiancheng, Yifan Home World, Chengdu Jiafei International Building Material & Furniture Market, China Agricultural Machinery (Chengdu) Exhibition & Trade Center
2013’s most demonstrative complexes in commercial real estate industry in West China Jinbao Lanshan International City, Yangguang Xinye Center, Shouxinhui, Chinese Business International City, Ruiyun Xin Plaza, Zhongyuan International Plaza, Yopindo Plaza, Jinke Center, Chengdu OCT, Zhongtian Future Ark, Intime City, Olympic Pacific Shopping Center, IFS, Air Harbor International City
Chengdu’s Future Commercial Network in Planning
1 core: Yanshikou—Chunxi Road—Dacisi core business block
19 business areas located as below:
Chenghua District: Jianshe Road, Qinglongchang, Longtansi, Baohe-Shiling; Jinjiang District: Niushikou, Eastern Sub-center; Wuhou District: Tiaosanta, Gaoshengqiao, Hongpailou, Jinyang, Gaobei; Qingyang District: Luomashi-Xida Street, Qingjiang, Guanghua; Jinniu District: Chadianzi, Shawan Exhibition Center, North Railway Station, Dongzikou Gaoxin District: Southern Sub-center
Prospects
With better and better commercial investment environment and strong power of consumption, Chengdu will attract a large number of new retail projects and featured blocks, creating an attractive sale-purchase market. As the rarest and the most valuable real estate product type, retail shops will be the best investment choice.
