September 28, 2012
The commercial complex will be developed as an extension to Shui On Land's Rui Hong Xin Cheng residential project.
Residents of the Rui Hong Xin Cheng residential estate in Shanghai will enjoy a new 500,000 sq m retail complex as part of Shui On Land's plans to extend the estate.
The developer announced earlier this week that it would own and lease the large complex, which is purpose-built to serve shopping needs. It did not reveal the investment amount for the new project, which is estimated to take between eight to ten years to complete.
Launched in 1997, Rui Hong Xin Cheng in the northern district of Hongkou will be transformed into a residential-cum-commercial complex through the addition of the new retail component. Shu On Land said that the move is targeted at catering to the changing needs of an increasingly affluent population.
"As local people's demand for quality life is increasing, we mapped out the plan in order to merge quality shopping space into the residential area," said chief executive Freddy Lee Chun-kong. "The project will serve the neighbouring communities and we hope to make it another landmark in the city."
Shui On Land's addition to its residential project reflects a growing interest in developers to focus on commercial developments as Beijing continues to clamp down on the residential sector.
"The past decade was a golden era for residential property development in China, and the coming decade will be a good time for commercial property," said Chen Sheng, deputy dean of the China Index Academy, a major real estate research organisation. "The key is to build appropriate projects that can attract consumers."
China remains an economic force to be reckoned with. Recent research by the Economist Intelligence Unit suggests that retail sales in the mainland will account for 53% of total sales in the Asia Pacific this year. Shanghai, China's commercial capital, saw a 12.3% surge in retail sales to RMB 677.7 billion last year.
The world's fastest-growing economy has attracted global brands seeking to profit from the growing income of Chinese consumers. However, many retailers find themselves hampered in their expansion by the lack of good quality retail space.
Tags: Commercial real estate, Shop for rent, Income properties
Retail Property News
, commercial real estate
, Shop for rent
, Income properties