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Zhu Wenqian

Hong Kong developer Swire Properties is doubling down on mainland China retail, betting accelerated investment in larger, more mature cities – combined with its deep local knowledge – can deliver growth despite the slowing retail property market.
The developer will launch its first Taikoo Place in Beijing in phases in late 2026, open a Taikoo Li in Sanya – a tropical city in the island province of Hainan – by the end of this year, and open another Taikoo Li in Xian, capital of northwestern Shaanxi province, in 2027.
It will also roll out the second phase of Taikoo Li Qiantan in Shanghai next year.
Swire Properties has allocated HK$100 billion (US$12.8 billion) for investment over the 10-year period from 2022 to 2032, with HK$50 billion earmarked for the mainland. It had deployed HK$46 billion on the mainland as of June last year, according to its earnings report.
“Combined, these ongoing projects mark the largest concurrent development pipeline in our history,” said Han Zhi, director of retail at Swire Properties. “Since 2025, the overall market sentiment has improved, with a growing number of retailers viewing this time as an opportunity, after adopting a more cautious approach in 2024.”
Han said foot traffic and sales at Swire’s mainland developments had been rising since mid-last year, a trend that had carried into 2026 as government stimulus measures supported the property and consumer markets.
He said he remained confident about China’s retail growth potential.
In the first 11 months of 2025, total retail sales in Beijing reached 1.25 trillion yuan (US$179.6 billion), down 3.1 per cent year on year, according to the Beijing Municipal Bureau of Statistics.
Even so, new supply has continued to come online.
Five commercial projects opened in Beijing in the fourth quarter of 2025, while the vacancy rate for premium shopping malls fell 1.7 percentage points quarter on quarter to 6.9 per cent, property consultancy Savills said.
“While the current environment is clearly challenging and consumption growth has slowed, China remains a very large consumer market,” said James Macdonald, head of research for China at Savills. “Domestic consumption is also a continuing policy priority, and retail real estate remains an important part of that broader consumption ecosystem.”
“The mainland retail property market is increasingly bifurcated, with a clearer separation between higher-performing, well-operated assets and lower-performing, less differentiated projects,” he added.

He said that developers’ focus appeared to be shifting away from chasing only “high-growth” markets and towards larger, more mature cities, where long-term vision, platform capability and a deep understanding of how the market evolves could help operators outperform over time.
China, a crucial market for global luxury brands, has also shown early signs of a rebound in high-end spending.
Burberry Group posted sales growth over the key holiday season, as shoppers snapped up its signature tartan scarves and trench coats – a trend that was particularly pronounced in China.
The British luxury retailer said on Wednesday that same-store sales rose 3 per cent in the fiscal third quarter ending December 27. Sales in Greater China climbed 6 per cent, double the growth rate of the previous quarter, driven by strong demand from Gen Z consumers.
Swire Properties said Gen Z shoppers were increasingly shaping consumption trends and that it had been closely tracking shifts in spending behaviour.
Han said the launch of DeepSeek and the rising popularity of cultural intellectual properties such as Ne Zha – a boy-warrior deity from Chinese mythology who has become a modern pop-culture icon through films and merchandise – in early 2025 had also helped lift consumer confidence.
“Our open-air commercial developments on the mainland, such as the Taikoo Li projects, have remained bustling in winter, particularly during the holiday season,” Han said. “Consumers are less averse to the cold than to hot weather, and colder temperatures have spurred stronger demand for winter apparel.”
After a major renovation, Taikoo Li Sanlitun North in Beijing has attracted new stand-alone stores from several luxury brands, including Dior, Hermès, Louis Vuitton and Tiffany & Co. Since the opening of multiple stores in December, the area has recorded a notable increase in footfall, Swire Properties said.
Han said luxury goods remained a core category for its retail developments, but the company believed strong commercial projects ultimately depended on variety. He said Swire’s ability to optimise its brand mix and run trials across its portfolio was a key competitive advantage.
Meanwhile, the 23 billion yuan Taikoo Place in Beijing is Swire Properties’ largest mainland investment to date.
Located in northeast Beijing along a river, the complex is being developed as an “urban oasis”, integrating eight connected office buildings, an expanded retail component linked to the existing Indigo mall, a new hotel, outdoor retail space and a riverside leisure offering – a combination the company said was not currently available in the capital.


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China property

Swire Properties remains bullish on mainland retail despite a slowing market

Taikoo Li Sanlitun. Photo: Swire Properties

Han Zhi, retail director of Swire Properties, at Beijing’s Taikoo Li Sanlitun North. Photo: Zhu Wenqian 

Business

Property

Foot traffic and sales have been rising across Swire’s mainland portfolio, lifted by Gen Z shoppers, holiday spending and policy support


Foot traffic and sales have been rising across Swire’s mainland portfolio, lifted by Gen Z shoppers, holiday spending and policy support.


Swire Properties remains bullish on mainland retail despite a slowing market

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Foot traffic and sales have been rising across Swire’s mainland portfolio, lifted by Gen Z shoppers, holiday spending and policy support

Foot traffic and sales have been rising across Swire’s mainland portfolio, lifted by Gen Z shoppers, holiday spending and policy support