appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Zhu Wenqian

Shanghai’s luxury retail market is set to become increasingly competitive, fuelled by a citywide shift as prime malls embrace experiential concepts to differentiate themselves.
Hong Kong developer Hang Lung Properties on Friday said that it had secured a 20-year lease for the No 1038 West Nanjing Road commercial project – formerly known as Meilong Town – in partnership with Shanghai Join Buy Group.
The project would be transformed into a mixed-use complex integrating retail, hospitality and office space, helping drive recurring revenue and increase the portfolio’s overall asset value, the developer said. Hang Lung said the move aligned with its strategy of prioritising capital-efficient reinvestment and asset optimisation to strengthen its position in core cities while bolstering Shanghai’s standing as a global retail destination.
James Macdonald, head of research for China at Savills, said Hang Lung would have control over another core asset situated directly alongside Plaza 66, in one of Shanghai’s most competitive luxury retail corridors.

“It is less about expansion and more about deepening control on an already prime patch – using Plaza 66 as a pure luxury flagship, while positioning the new project to introduce a broader mix of lifestyle, food and beverage and experiential concepts around it,” said Macdonald.
Shanghai ranks second globally among major metropolises in terms of international retailer agglomeration, trailing only New York, according to the local municipal government.
Global luxury markets were resilient this year, with overall luxury spending stabilising at last year’s levels, despite headwinds from economic and geopolitical uncertainties, according to a November luxury goods report from Bain & Co, in partnership with Altagamma, the Italian luxury goods manufacturers’ industry association. The study found consumers globally favour experiential indulgence over conspicuous consumption.
Separately, Hang Lung said the third phase of Plaza 66 was set for completion in the middle of next year and it would open in the latter half of the year.
“West Nanjing Road is not just a premier commercial destination, it is the cultural and historical heart of Shanghai,” said Weber Lo, CEO of Hang Lung Properties. “The new dynamics will further strengthen the area’s reputation as a hub for international lifestyle.”
Meanwhile, a number of new commercial projects are set to open in Shanghai over the next three years, making the local market increasingly competitive.
For instance, the second phase of Taikoo Li in the Lujiazui financial hub on the banks of the Huangpu River, developed by Hong Kong’s Swire Properties, is set to open next year.

K11 Elysea, the second K11-branded mall in Shanghai, is coming up on Huaihai Middle Road and directly across the street from the first K11 mall. Developed by Hong Kong’s New World Development, the project includes the renovation of the adjacent Huaihai Park and is scheduled to open next year.
Separately, the eastern area of Zhangyuan, a historic neighbourhood known for its shikumen architecture and blend of traditional and modern elements, is undergoing renovation and expected to open in late 2026.
Macdonald said these developments underlined just how competitive the luxury segment had become in Shanghai and China. In the post-Covid-19 era, the segment had become much more challenging though China remained a strategically important market, he said.
“Brands are streamlining their networks and reinvesting in a smaller number of key submarkets and flagship stores,” he added. “That puts more pressure on landlords to keep reinvesting and refreshing formats.”
Amid a complex and challenging external environment, Shanghai’s economy has demonstrated resilience, achieving 5.5 per cent growth in the first three quarters, outpacing the nation’s 5.2 per cent during the same period, according to the Shanghai Bureau of Statistics.
“Mainland cities like Shanghai, Suzhou and Hangzhou boast both relatively high per capita spending and a larger per capita commercial floor area, a combination that intensifies competition for commercial operators,” said Yuan Hao, chief analyst for real estate at SWS Research, a Shanghai-based equity research and consulting firm.
“As per capita GDP [gross domestic product] and per capita retail sales continue to rise, the consumption sector retains substantial growth potential,” Yuan said. “Shopping malls stand out with stronger growth prospects, aligning with the broader trend of consumption upgrade. In particular, premier malls demonstrate greater development potential.”


How China’s growing Reit sector is giving foreign property investors a route back in

Led by China and US borrowing, the world now owes a record US$365 trillion debt: IIF

To increase China’s consumption, boost the nation’s social safety net, IMF director says

Hong Kong developer New World gets nod to spin off K11 Shanghai assets

China property

Hong Kong developers lead evolution of Shanghai’s retail scene with new malls, concepts

Malls in Shanghai are revamping with new concepts to keep consumers interested. Photo: Reuters

Hang Lung Properties’ Plaza 66 in Shanghai. Photo: Handout

The K11 mall in Shanghai. Photo: Handout

Hong Kong scion Adrian Cheng signs Dubai retail partnership with group headed by royal

Sheikh Mana bin Khalifa Al Maktoum (third from left) and Adrian Cheng (centre), pictured at a signing ceremony on Wednesday in Dubai. Photo: Handout

Fashion house Schiaparelli picks Hong Kong’s Landmark for first flagship Asian store

Hongkong Land’s Landmark shopping centres in Central are undergoing renovation. Photo: Jonathan Wong

Yves Saint Laurent is among five luxury brands that have opened or are set to unveil their new stores in Hongkong Land’s Landmark-branded properties. Photo: Jonathan Wong

Shanghai premium office market picks up as rent discounts encourage upgrades

Cars travel through central Shanghai on August 26, 2025. Photo: EPA

Shanghai’s economic growth in the first nine months exceeded the national pace for the first time since 2016. Photo: Xinhua

Business

Property

Hang Lung, New World and Swire are renovating and expanding their malls in Shanghai to stay relevant in a competitive environment


Hang Lung, New World and Swire are renovating and expanding their malls in Shanghai to stay relevant in a competitive environment.


Hong Kong developers lead evolution of Shanghai’s retail scene with new malls, concepts

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Hang Lung, New World and Swire are renovating and expanding their malls in Shanghai to stay relevant in a competitive environment

Hang Lung, New World and Swire are renovating and expanding their malls in Shanghai to stay relevant in a competitive environment