China’s economy showed a recovery trend in Q4 2022, with GDP of RMB33.55 trillion, up 2.9% y o y. The resurgence of COVID 19 caused some impact on the consumer market, with total retail sales of social consumer goods falling 2.7% y o y, while rising 8.7% q o q. Consumer promotion policies have been effective, new consumption models have been developing steadily, physical retailing continues to recover, and the consumer market development is improving in the long run.
The overall logistics market rental demand continued to recover in Q4 2022. The total value of social logistics goods rose by 2.7% y o y. Demand for prime logistics warehouses in the manufacturing sector was strong, while energy and consumer goods production demand remained stable. The trend of online shopping as a source of growth in the consumer market continued to consolidate, with e commerce and third party logistics still the main tenants within the premium logistics market.
Due to the impact of the COVID 19 pandemic, developers have slowed their investment decisions. In addition, in the segmented market, the cold chain logistics development trend is optimistic, while a higher return on investment has attracted the attention of logistics real estate developers and real estate development funds, channeling capital into the construction of cold storage and related facilities.
In 2022, facing a complex and challenging international environment as well as the continuing domestic epidemic, the logistics industry demonstrated a strong ability to withstand pressure and develop resilience, maintaining an overall upward trend. With the relaxation of epidemic prevention and control policies, and a steady recovery in residential consumption and rapid growth in the manufacturing sector, the premium logistics warehouse market in South and East China is expected to recover, despite being impacted by new supply and a weakening economic outlook. Growing demand for cold chain logistics presents opportunities and growth points for the overall industry.