A report by TH Real Estate, ‘THINK: China’, notes that the addition of 2 million square metres of new retail space in Shenzhen could cause the vacancy rate to rise to over 15% in the next three years. TH Real Estate notes that Shenzhen has the highest real household disposable income per head of any large city in China. At 34, the average is the youngest of any large city: Shenzhen is therefore favoured by fast fashion retailers. The proximity of Hong Kong’s low/no sales tax shopping has constrained the development of very high end luxury retail shopping in Shenzhen.

Source : August 2015/THRE/Shenzhen/RET