In our previous column, we did an analysis of how the Government Work Report 2020 could affect Mainland China’s real estate market in terms of the overall economic and regional planning for the coming twelve months. This column will continue to interpret the potential impacts of the Government Work Report on Mainland China’s retail property market. The data indicates that domestic demand has become a major factor in the economic growth of Mainland China in recent years and the average contribution rate to China’s economic growth in 2018 and 2019 was more than 65%.
Nonetheless, since the beginning of the year, due to the COVID-19 pandemic, the market is actively being monitored on how Mainland China could boost residents’ consumption during the year and help the retail property market recover. In fact, in order to enhance household consumption’s willingness and ability, the most important component is to stabilise employment and promote and increase income to protect residents’ livelihood.
Meanwhile, the upgrade of pedestrian streets will continue to be one of the priorities of this year’s agenda and it is expected to energise the various areas and offer boundless business opportunities. As we all know, pedestrian streets are under the national focus for upgrades, including Wangfujing Pedestrian Street in Beijing, Nanjing Road Pedestrian Street in Shanghai and Beijing Road Pedestrian Street in Guangzhou. Additionally, it is well known that new activities such as e-commerce purchases and online services facilitate consumer spending during these epidemic circumstances. The government will continue to introduce supporting policies to comprehensively promote online and offline integration and to cater to diversified consumer needs to bring the retail real estate sector on the road to recovery.