Hang Lung Properties, a Hong Kong-based developer, is set to expand its flagship mall, Plaza 66, in Shanghai’s West Nanjing Road, Jingan district, by 32,290 square feet by 2026. This move comes as part of the company’s strategy to tap into China’s growing luxury market, which is projected to surpass the US as the world’s largest luxury market by 2030, according to a report by PwC.
Janice Cheung Lam-na, director of mainland business operations at Hang Lung, stated that the expansion aims to cater to the increasing demand for high-end luxury goods among Chinese consumers. The project, which has received approval from the local government, will introduce new experiences and stores previously unseen in China.
The expansion will add approximately 3,000 square meters of gross floor area, accommodating 20 new stores. Hang Lung’s portfolio also includes Grand Gateway 66 in Shanghai.
Amid China’s economic recovery efforts, driven by a focus on consumption, Hang Lung’s move reflects broader trends in the luxury retail sector. Despite sluggish retail sales growth in March, projections indicate significant growth in the global personal luxury market, with China expected to lead the way.
Hang Lung’s membership data suggests a notable increase in high-spending customers, particularly among younger demographics, indicating a shift in consumer behavior towards luxury goods. Nicholas Poon, general manager of Grand Gateway 66, noted a growing emphasis on emotional value over price among consumers.
Founded in 1960, Hang Lung Properties has been actively investing in China’s commercial and residential real estate market since 1992. Currently, its mainland business contributes 68 percent of the company’s rental income.
Ronnie Chan Chi-chung, the current chairman of Hang Lung Group, is set to retire on April 26, with his son Adriel slated to take over leadership.
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