Three Or Four Tier Cities Contain More Business Opportunities, Do You Know?

The world's most active city shopping center development report released by CB Richard Ellis shows that China's cities occupy nine seats in the world's top ten most active shopping mall market rankings.

Shanghai ranked first in the list of 4 million 100 thousand square meters of built shopping centers, followed by 3 million 400 thousand square meters in Shenzhen.

Compared with large shopping centers, community business has become the new market of Rio Tinto for many housing companies.

However, Ouyang Jie warned that because of the high population density, people tend to spend more money in nearby cities, so the chance of community commerce in a second tier city is even higher.

Even if consumption upgrades will be an important investment theme for China's economy in the next ten years, it does not mean that housing companies can make money as easily as the gold of the past ten years, and it is not easy to share a slice of the cake in the big consumer cake.

Although the second tier cities benefited from strong population absorption, attracting more and more developers to enter, but Ouyang Jie found that the second tier city shopping center is nearly saturated, and in many three or four line cities,

The quantity is too small, the consumption mode needs upgrading urgently. There are 400 thousand ~50 million people in some three or four line cities.

However, the development of shopping centers in the three or four tier cities can not simply copy the investment mode of a second tier city.

Ouyang Jie believes that, first of all, in the combination of formats, on the one hand, we should introduce the brand shops, stores or restaurants that these cities do not have. On the other hand, we should also "connect with the local atmosphere" and introduce local famous brands and restaurants to complement the formats.

Secondly, we must maintain a moderate level in the positioning of consumption grades, and do not blindly introduce high-grade brands, resulting in disconnection with actual purchasing power.

In addition, the volume of shopping centers is best controlled at 80 thousand ~9 square meters, otherwise it will easily fall into investment difficulties.

In Ouyang Jie's view, with the gradual decline of fixed asset investment, consumption has become the main force driving economic growth.

In the first half of this year, the contribution rate of consumption to GDP growth reached 54.4%.

But the problem is that the growth of consumption is gradual and the growth of per capita income of residents is also slow. It takes time to cultivate and expand new consumption hot spots, and the contribution rate of consumption to GDP growth will reach 70% limit, which means that the market increments brought by consumption will always have ceilings.

"Although there are still room for development in the shopping mall of the three or four tier cities, according to our statistics, at most ten years, the demand for shopping mall in the three or four tier cities will also reach the ceiling, which means that the retail commercial real estate is also moving from the horse race enclosure to the weak generation."

Ouyang Jie told the daily economic news that the ceiling of all brand businesses will also appear. If investment is difficult now, then there may still be no business to recruit. Therefore, a large number of poor shopping centers will be eliminated, or be integrated acquisition, or can only be pformed to quit.

Even as an old brand in Hongkong.

The giant's Hang Lung estate also felt the chill brought by the market.

In a letter to shareholders written by Chen Qizong, chairman of Hang Lung estate, there was a rare pessimism: in the 6 months after the opening of Hang Lung Plaza in Tianjin, there were at least six furniture sized retail properties in the mainland, and Hongkong and Mainland China were closed.

Both are slowing down, and Hang Lung is preparing for a long winter.

"Although the growth of consumption is certain, for most housing companies, it is not expected that retail commercial real estate will be able to make money as easily as residential property in the past. This market will become stronger and stronger, and only a small number of people will be winners."

Ouyang Jie said that for the developers who aspire to develop in the retail property field, it is the key to improve their operation capability. The leading enterprises in the future market need to seize more market by means of agent construction, output management and financial instruments such as Reits.