People’s Daily published an article which reported that, during the recent 2015 Boao Real Estate Forum in Hainan, experts attending the forum concluded that the Chinese market has an excess of commercial real estate. The article said that it is a difficult situation that will last for a long period of time. Everyone must accept it and be ready to endure the resulting consequences. According to the article, in Tianjin, at least five shopping malls and department stores closed in the past six months. The empty spaces had to be rented out as business buildings. Some of them are on a month to month basis at only 80 yuan (US$12.52) per square meter. In Chongqing, the vacancy rate of the shopping centers is at 10.2 percent. The article stated that the weak consumer market has affected the vacancy rate, with the growth rate falling behind the newly developed commercial shopping centers. Some of the vacancies resulted when the centers tried to bring in improper store brands.
Source: People’s Daily, August 23, 2015