Tier 2 and 3 cities may become fertile investment ground in the future!
The 2022 China City Commercial Power Ranking is a comprehensive evaluation of the commercial prosperity of cities based on the "commercial power" index. This year, 20 cities, including Hefei, Qingdao, Shenyang, Kunming and Wuxi, were shortlisted as commercial tier 2 cities, with Xiamen and Nanchang selected as representative cities to be studied. 36 cities, including Xuzhou, Jinhua, Zhuhai, Huizhou and Shaoxing, were shortlisted as commercial tier 3 cities, while Zhongshan and Liuzhou have great potential for commercial development, gradually finding their own development mode and progressing step by step amidst continuous market changes. They will be explored here for the industry to learn from.
The size of Xiamen's stock of assets continues to grow
Overall in a period of parallel stock and growth
It is worth noting that Xiamen may see the highest "supply" in its history in 2022, and if the projects can be completed on time, the overall volume of new projects this year could exceed 850,000 square meters, injecting new vitality into the Xiamen commercial market.
Of the 82 projects of shopping centres (and independent department stores) that have opened and are in the pipeline for opening in the next 2 years, 51 projects are in shopping districts, of which 18 projects are in municipal shopping districts (21.95%) and 33 projects are in regional shopping districts (40.24%), making the overall concentration of municipal shopping districts lower than that of regional shopping districts.
Nanchang's commercial development is gaining momentum
Several large commercial projects to be unveiled in turn
Compared to other cities in Central China, Nanchang's commercial development potential is still very large and will continue to heat up in the future. In the next 2 years, 33 new projects will be added to Nanchang, bringing the total number to over 89 by 2024, with a combined commercial floor area of 6,384,900 square metres.
With the development of business, a number of new shopping districts in Nanchang have long been on a high rise. Sixteen shopping districts have been formed in all urban areas of Nanchang, including two municipal shopping districts and 14 regional shopping districts. Of the 89 shopping centres (and independent department stores) that have opened and will open in the next two years, 51 projects are in shopping districts, of which 35% are in municipal shopping districts and 65% are in regional shopping districts, making the overall concentration of regional shopping districts higher than that of regional shopping districts, while the number of projects in regional shopping districts will build up and slowly start to impact on core shopping districts.
Concentration of middle class and young mainstream types
Strong consumption potential in Zhongshan
According to statistics, since the opening of Lihe Plaza in 2012, Zhongshan has experienced a "golden decade" of commercial development, with 44 new commercial projects and a total of 2,999,700 square metres of new commercial floor space added during the decade. As of September 30, 2022, there are 54 shopping centres (including independent department stores) in Zhongshan, with an overall volume of approximately 3,608,700 square metres. By next year, another wave of market entry will be approaching, with 8 commercial projects bringing an additional supply of 726,000 square metres, which will further enhance Zhongshan's commercial influence.
Xiaolan and Shiqi lead the way with a unique "town street business" model
"The unique administrative division of the city has created a unique "town street commercial" model in Zhongshan, which is characterised by an overall scattering and a small concentration.
Business district: Daxin business district is the only city-level "top stream"
According to the previously announced "Zhongshan Commercial Development Plan (2019-2035)", Zhongshan will form "a main two-belt three-core multi-centre" commercial pattern in 2035, in addition to continuing to focus on the central city, the north-western direction of commercial upgrading, but also to promote the development of new business districts in the eastern and southern groups.
Up to now, 13 shopping districts have been formed in Zhongshan, including 30 shopping centres (including independent department stores), mainly in Shiqi District, East District and Xiaolan Town, where the business started early and the atmosphere is more mature, such as Daxin Shopping District, Holiday Shopping District, Sun Wenxi Shopping District, Zhongshan Third Road Shopping District and Xiaolan Shopping District.
Netflix star Liuzhou, which has burst onto the scene with its snail noodles
New changes in business continue to be staged
2018 to date: "A hundred flowers" of commercial personality
During this period, Liuzhou's commercial industry has seen the interweaving of diverse commercial forces from foreign and local enterprises, showing a "blossoming of a hundred flowers".
In the second half of this year and in the next two years, Liuzhou's incremental market will rebound, with approximately 290,000 m² of new commercial volume.
Among them, Chengzhong District is the centre of commerce, finance, culture, education and entertainment in Liuzhou and has the strongest commercial atmosphere, topping all administrative districts with 573,600 square metres of commercial volume (shopping centres and independent department stores). Yufeng District has the largest resident population and is the main business centre in Liuzhou, ranking second with a commercial volume of 324,800m2 (shopping centres and independent department stores). Liunan District currently ranks third with 227,600 m² of commercial stock (shopping centres and independent department stores). In terms of incremental growth, new shopping centres will enter the market in the next 2 years in Chengzhong District, Yufeng District and Liujiang District. It will be difficult to shake the first position in Chengzhong District, and the ranking order of commercial capacity in Liuzhou's urban areas will continue to remain as it is.
Specifically, of the 26 shopping centres (and independent department stores) that have opened and are in the pipeline for the next two years, 16 projects are within the above five business districts. Of these 16 projects, nearly 90% are located in the Wuxing Shopping Area, the Feige Road Shopping Area, the Hedong Shopping Area