According to a recent report from real estate consultancy CBRE the number of shopping centres in development worldwide is up 15 percent compared to a year ago and more than half of the projects are in China.
The current pipeline of shopping centre projects in China has reached 16.8 million square metres according to CBRE, with much of it underway in second-tier cities. Of the 10 most active cities for mall development 7 of them are on China’s mainland.
In Chengdu there are projects totalling 2.9 million sqm under construction, with another 2.1 million sqm being built in Tianjin. Chongqing, Wuhan, Guangzhou and Hangzhou are scheduled to deliver over one million square meters over the next three years.
While the amount of mall space being put together outside of the major economic centres may seem alarming, rival real estate consultancy Jones Lang LaSalle recently predicted that China’s voracious consumers will help retailers rapidly absorb these future developments.