Over the past year, “expanding domestic demand” and “boosting consumption” have remained key priorities for China’s economic development. Supported by policies to boost consumption, new growth drivers in consumption continue to emerge, with consumer demand for emotional satisfaction and entertainment experiences on the rise. In turn, China’s consumption structure has gradually shifted from a goods-focused pattern to a more balanced mix of goods and services.
At Q2 2026, the total prime retail property stock in the core markets of the 15 major cities that Cushman & Wakefield tracks in Greater China reached 123.1 million sq m. Looking ahead, approximately 18 million sq m of new supply is scheduled to enter the market by the end of 2028, further intensifying competition among landlords and operators. The consumption structure in China has gradually shifted from a goods-focused pattern to a more balanced mix of goods and services. To meet increasingly diverse consumer demands, the retail sector has been actively introducing new business models, consumption scenarios, service offerings, and retail formats.
In terms of supply and demand, several key trends stand out in 2026:
- Lower-tier cities show consumption resilience
- Experience-driven consumption is reshaping offline retail spaces
- Continued growth in commercial performances
- Tourism is fueling consumption growth
Uncertain income expectations have led to subdued consumer spending appetites, and the momentum of the recovery in consumption is volatile. As a result, China is continuing to roll out special consumption-boosting initiatives and to implement policies to safeguard people’s wellbeing. The combined effect of these stimulus policies is expected to sustain steady momentum in the retail property market in Greater China.
