SkyscraperCity banner
1 - 20 of 66 Posts

·
Mind Reader
Joined
·
3,535 Posts
Discussion Starter · #1 ·
Is this a problem of an overheated economy?





This is no longer your grandmother’s China. This is a brand spanking new China. A middle-class China that likes Prada and Wal-Mart (WMT) and earns as much as Americans in some businesses. Consumerism is seeping in. No wonder Disney (DIS) is building a theme park there.

According to a new report by commercial real estate firm CB Richard Ellis, more than half of the shopping malls being built on the planet today are being built in China.

About 29.6 million square meters of shopping center space are being built in the world, equivalent to the combined existing space in France, the UK and Germany. Last year, new, completed construction totaled 7.8 million square meters of new mall space, CBRE said.

China was the most active market, with four cities in the top five for completions of new shopping malls. Shenyang (over one million square meters in six malls) and Wuhan (0.75 million square meters in seven malls) were the runaway leaders, according to the report. In spite of the huge scale of new development in many Chinese cities, occupier demand for prime stock typically outweighs supply. Much of the new space has been developed in up-and-coming areas of a city and not in the prime areas where international retailers want to locate.

“Due to the rapid increase of middle-class populations around the world, shopping center developments are on the rise to satisfy growing consumer demand,” Sebastian Skiff, executive director of CBRE Retail in Asia told Shanghai Daily on Thursday.

Chinese cities are expected to continue to dominate shopping mall development activity over the next few years. Eight out of the top 10 most active markets globally are in China. Tianjin heads the list with 2.4 million square meters of new mall space currently under construction, followed by Shenyang and Chengdu.

Outside China, the most active markets are Abu Dhabi, Hanoi, Kuala Lumpur, New Delhi and São Paolo, the CBRE report said.

“With construction activities expanding rapidly not only in Beijing and Shanghai but also deeper into the highly populated provincial capitals, China is topping the charts for development growth,” said Skiff.

http://www.forbes.com/sites/kenrapoza/2012/06/20/half-of-worlds-new-shopping-malls-in-china/
 

·
Journeyman
Joined
·
16,793 Posts
I wonder how many will succeed, and how many will be empty.

The article says "much of the new space has been developed in up-and-coming areas of the city and not in the prime areas where international retailers want to locate." While the international aspect shouldn't drive things, that doesn't sound promising.

I've only been to Hong Kong and Macau, not the "real" China. But based on that and a lot of photos, I'd rather hang out in the older neighborhoods with small streets and small blocks, not the highway-n-highrise newer areas where these malls typically are.

When developers bet on an up-and-coming area, sometimes it works and sometimes it doesn't. The same goes for existing strong districts but less so assuming they judge the lack of supply correctly and don't screw up integration with the city etc. But in the latter case demand isn't the question, just your ability to take advantage of it. In the first case you're betting on both demand and your ability.
 

·
★ ★ ★ ★ ★ ★
Joined
·
4,258 Posts
Please anyone, don't dig up the infamous empty New South China Mall in Dongguan. Tons of malls are constructed over the country and don't let one empty mall be the overall example of malls in China. Malls in China are quite lively and the one in New South China Mall is just one of a kind in a country of 1.3 billion people.
 

·
CANNED
Joined
·
2,335 Posts
The problem isnt that the chinese are shopping the problem is that they build malls and not proper cities.
thats right as well. One thing suits the other...

What about building theatres???
 

·
★ ★ ★ ★ ★ ★
Joined
·
4,258 Posts
Hey why all the negativeness? China's population is 1.3 billion and it's economy is growing rapidly, is there anything un-normal with these statistics that half of the world's new malls are being built in China?
 

·
Registered
Joined
·
15,816 Posts
I would find statistics about the economic success of new already finished malls in China even more interesting than those of new constructions. China as a rapidly growing and developing market is naturally in high danger of overheating. I mean if Spains development market could overheat and explode this is surely a risk for a much stronger and faster developing society as China.

China really has to watch out.

PS: I am not a great fan of "highway'n highrise" developments either. There would be more sustainable alternative urban concepts with equal densities than that.
 

·
CANNED
Joined
·
2,335 Posts
a lot of this development can be tracked down to the governments stimulus program launched in 2009 when also Chinas growth temporarily slowed down. A lot of of these projects were relaizied in Chinas interior in accordance with Chinas go west strategy.
This prevented Chinas economy not to fall below the magic 6% growth corridor and employed a lot of dissatisfied and poor rural people but 3 years later it turns out that not for all of these projects there is corresponding demand.
 

·
Registered
Joined
·
5,535 Posts


Interesting the places NOT on the list.

Not a single US city. Several decades ago almost all the malls were in the US. However, malls have lost popularity in the US.

Clearly, the mall builders have moved on to the developing world.
 

·
Banned
Joined
·
8,321 Posts
Interesting the places NOT on the list.

Not a single US city. Several decades ago almost all the malls were in the US. However, malls have lost popularity in the US.

Clearly, the mall builders have moved on to the developing world.
I don't think that malls have lost popularity, but rather the traditional markets have become saturated.
 

·
Registered Usurper
Joined
·
8,318 Posts
Shopping malls are not an indicator of successful urban planning, but rather quite the opposite.

The world's greatest shopping is not to be found in a gargantuan suburban mall, rather it is found within the heart of a city with vitality and excitement in all its glory.

Fifth avenue, Bond street, Avenue Montaigne, Ginza, etc...
 

·
Registered
Joined
·
5,535 Posts
Quite true.

After decades of growth, US mall construction tapered off by the end of the 1980s.

Big Box retailers boomed in the 1990s.

By 2010, many of the Big Boxes too were empty.

Many of the once popular downtown malls have faded,

While a few of the best downtown malls continue to thrive.
 

·
Skybar Mod
Joined
·
24,339 Posts
How the hell is a South African city not on this list. South Africa is in a mall explosion. :lol:
 

·
Registered
Joined
·
24,735 Posts
in 2010 124 in construction in Brazil

:cheers::cheers:

Today there is 421 big shopping malls in Brazil.

330 millions people every month. wow

 

·
***Alexxx***
Joined
·
5,275 Posts
I thought most of the malls in China were empty?

In England in the 90s there was a bit of a shopping mall boom, but the Trafford Centre and Meadowhall are both fully used.
 

·
Put it in your mouth
Joined
·
7,111 Posts
No surprise really. China is home to a 6th of the world's population after all.
 
1 - 20 of 66 Posts
Top