Daily consumption remains steady, with emerging brands expanding

• In Q3 2025, Shenzhen’s consumer market maintained modest growth under rational consumption choices. Daily consumption retailers, underpinned by stable demand, continued to support the retail leasing market.
• Meanwhile, consumers showed strong interest in emerging consumption focused on “emotional value” and “healthy living”, driving mid- to high-end international outdoor sports, trendy apparel and art toy brands to enter core retail projects.

Citywide vacancy rate decreases slightly

• During the quarter, both the urban and suburban submarkets welcomed one new project. Leveraging established developer resources, these projects attracted numerous first-outlet brands and achieved high occupancy.
• The vacancy rates of most existing projects remained stable. Certain projects in mature residential areas lowered vacancy rates by introducing affordable dining and apparel tenants. Overall, the citywide vacancy declined by 0.3 ppt q-o-q to 3.9%.

Citywide rent decline moderates in Q3 2025

• Despite a rebound in retail leasing activities in Q3, most retailers remained highly sensitive to foot traffic quality and stability during expansion. Thus, prime tenants continued concentrating in landmark projects with prime locations and loyal customer bases.
• Conversely, most ordinary projects located in non-core areas generally adopted more flexible rental strategies to enhance their leasing competitiveness. Overall, the citywide rent decline moderated in Q3 2025, falling 2.2% q-o-q.

Outlook: Continuous stimulus policies are expected to stabilise market confidence

• The government is expected to keep rolling out consumption stimulus policies to stabilise the market. Daily consumption is likely to remain the main driver of retail leasing, while emerging brands will accelerate their expansion into Shenzhen.
• Over the next 12 months, Shenzhen’s retail market will see around 350,000 sqm of new supply. Driven by both modest consumption recovery and new supply, the citywide vacancy and rent levels may face pressure in the short-term.