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A premier luxury retailer will anchor a new mixed-use development on the site of the Zhujiang New Town Racecourse, which was recently acquired by a major property firm for the highest average price per square meter ever recorded in Guangzhou.
The real estate company is partnering with the parent company of the luxury department store to develop a comprehensive urban complex spanning approximately 125,000 square meters. Announced yesterday through a cooperation agreement, the project will include a park, shopping outlets, hotel accommodations, office spaces, and residential units. Construction is projected to take three to four years, potentially beginning as early as the end of this month.
Once completed, the high-end retailer will introduce international luxury brands, aiming to transform the area into a leading global shopping destination with annual sales surpassing 10 billion CNY (roughly 1.4 billion USD). The development is anticipated to invigorate Guangzhou’s fashion industry, exhibitions, tourism, and premium service sectors, thereby enhancing the city’s reputation for luxury retail, according to the chairman of the development firm at the signing event.
Situated in the heart of Guangzhou’s central business district, the site was previously home to the city’s racecourse until it closed in 1999. The area was subsequently occupied by car dealerships, furniture stores, restaurants, and various other businesses. In 2021, the city initiated redevelopment to establish a large, mixed-use residential and commercial complex tailored for the CBD.
The property was acquired on February 25 after an intense bidding process involving 243 rounds, with a final bid of 23.6 billion CNY (approximately 3 billion USD). This purchase marked the second-highest land auction price in Guangzhou’s history, trailing only behind the 2009 Asian Games City project. Residential units on the site sold at an average price of 85,000 CNY (around 12,300 USD) per square meter, setting a new record for the city.
The luxury department store is part of a well-established retail group known for setting the standard in high-end shopping malls since opening its first location in Beijing in 2007. Last year, the brand achieved sales exceeding 24 billion CNY (about 3.5 billion USD), maintaining its position as the top-performing department store chain in terms of single-store sales nationwide.
Since 2018, the group has extended its high-end retail concept to various cities across China, opening stores in Xi’an, Chengdu, and Wuhan, with a fifth store currently under development in Hangzhou.
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