China’s key shopping street rents have fallen to 2018 levels as cautious consumers cut spending and landlords lower prices to fill vacancies
In the second half of 2025, average rents across a sample of 100 major commercial streets in 15 key mainland cities dropped to 24 yuan (US$3.50) per square metre per day – the lowest since the second half of 2018 – the independent real estate research firm said in a report published on Monday.
The pace of decline accelerated compared with the first half of the year, with rents slipping 0.8 per cent for 2025 overall, a steeper fall than in 2024.
“Slower growth in catering revenue, compounded by competition from high-quality shopping malls, has put most commercial streets under pressure and pushed rents lower,” the academy said.
Chinese consumers have been spending cautiously and saving more amid uncertain job prospects and a prolonged property downturn that has eroded household wealth tied up in real estate.
China’s surveyed urban unemployment rate stood at 5.1 per cent in December, while the jobless rate among those aged 16 to 24 was 16.5 per cent.
The country is now in its sixth year of a property slump despite a wave of policy support aimed at stimulating home purchases, and analysts expect prices and sales to keep declining for another two years.
