Chengdu | 2022 Q4| Retail：Several malls launched and the asset-light strategy further develops
•In Q4, five new malls came online, with a total GFA of 603,000 sq m (6.5 mil sq ft), including The Magic in Financial city, Aegean Park in Tianfu New Area, COSMO in Chunyan, Longfor Shuxin Paradise Walk in Pidu and Mandarin Plaza in City East. Meanwhile, Chengdu SKP, a high-end department store, also opened in Q4. Some malls delayed to 2023 due to the epidemic. Therefore, the total supply in 2022 reached 856,000 sq m (9.2 mil sq ft).
•In Q4, the overall net absorption reached 435,300 sq m (4.7 mil sq ft). The demand remained soft but the market turned more positive, as the net absorption in the same sample comparison recorded -87,700 sq m (-943,700 sq ft), a significant QOQ increase. The city-wide vacancy increased by 1.1pps QOQ to 12.5%, and the rent dropped 0.6% QOQ to RMB356.3 (USD51.6) per sq m per month.