Summary

There are two fundamental drives for the retail property market development: one is the market impetus which is mainly driven by the pace of urban economic development, and the other is the state impetus which influences the retail property market through the measures of urban planning and macro control.

This report first analyzes the two strands of impetuses on the retail property market in the first half-year of 2006, and then makes a detailed study on the supply-demand status and the trends of capital values and rentals for the retail property market in Shenzhen. This is followed by an overall analysis of the retail property market features and development trends. Lastly some key retail projects are listed for detailed introduction. The whole report consists of 7 sections.

In General, Shenzhen's retail property market in the first half of 2006 has showed the following features:

		Rapid economic growth has provided a good platform for the rapid development of the retail property market.
		Although the market demand slightly decreases (YoY), the capital value for newly supplied retail properties is still on the rise (YoY).
		Competition between retail property developers becomes increasingly intesified.
		Commercial planning will enhance the upgrading of Shenzhen's existing commercial zones and retail facilities within them .
		Solely-owned properties for lease would become the mainstream mode of operation in the commercial property sector.
		Market reshuffle and integration is needed to moderate the contradictions in the market.