Landmark of Hefei Binhu New District: The White-Clad Knight Has Finally Arrived

The seventh project under Vanke Commercial in Hefei is well-known among those familiar with the Hefei market. This city is not only a “vibrant hub” attracting young people but also a “city of potential” with high commercial ceilings. Over the past two years, both domestic and international enterprises, including Swire Properties and Aeon Mall (China), have conducted on-site or indirect assessments of Hefei.During the previous real estate boom, many major developers who were optimistic about the city’s growth were willing to invest heavily in Hefei. These developers acquired multiple prime plots in the urban new districts surrounding Hefei’s old city, planning large-scale urban complexes encompassing commercial, office, hotel, and residential spaces. As a result, housing prices in Hefei soared, particularly in the Binhu New District, where average prices once exceeded RMB 35,000 per square meter, and some new projects even surpassed RMB 60,000 per square meter.However, the market didn’t evolve as smoothly as expected. The global economic slowdown combined with China’s real estate chill severely impacted the domestic property market. Many previously thriving developers quietly “fell from grace.”

Construction projects under these developers, requiring huge investments, were often paused or left unfinished. In Hefei, two such projects faced difficulties: “Hefei Suning Plaza,” located at the intersection of North Second Ring Road and Mengcheng Road, and “Hefei Baoneng City” in the southern Binhu New District CBD along the lakeside.In recent years, local government authorities and relevant enterprises have been actively working to revitalize these two projects. Through joint efforts, one of the most challenging projects, Baoneng City, has finally seen a breakthrough — the arrival of the “white-clad knight” to turn the situation around.Now, the former Hefei Baoneng City has been rebranded as the Hefei Binhu Baohui Project, with the residential portion co-developed by CRCC Real Estate and Greentown Management. The commercial segment, which has drawn significant attention, recently officially announced the introduction of CR Vanguard Vanke Commercial, bringing a high-end shopping center under the Vanke Commercial series. The Binhu Vanke Commercial project, now officially signed, becomes Hefei’s seventh Vanke Commercial project — following Hefei Happy Song, Hefei Shushan Vanke Mall, Hefei Vanke City, Hefei Luyang Vanke Mall, Hefei Baohe Vanke Mall, and Hefei Yaohai Tiandi (under construction).

It is also the second light-asset project in Hefei.In CR Vanguard Vanke Commercial’s Central China region (Hubei, Hunan, Anhui, Jiangxi), Hefei ranks second only to Wuhan in the number of Vanke Commercial projects.Binhu New District as Hefei’s emerging commercial hub.Located in the southern part of Hefei and encircling Chaohu Lake, Binhu New District has been a focus for urban development over the past decade, emerging as a new metropolitan district and commercial center. Since 2016, with provincial authorities and dozens of bureau-level institutions relocating to the district, development has accelerated. Modern residential communities have sprung up, and large-scale shopping centers, convention centers, and cultural venues have risen rapidly.However, the evolution of a city and its commercial landscape takes time. Despite Binhu New District’s rapid growth over the past decade, it has faced notable constraints.From a commercial perspective, the district’s retail areas are divided into north and south clusters by Tangxihe Park and Fangxing Lake Park. The northern cluster is densely populated with malls such as Hefei Fangyuan Mall, Hefei Yuefang ID Mall, and Baida Xinyue City, creating fierce competition and serious homogenization.The southern lakeside cluster focuses more on cultural and tourism experiences, featuring the Dujiang Campaign Memorial Hall, Pullman Hotel Hefei, and commercial-tourism projects like Hefei Sunac Mall.

While the area offers a cultural and leisure atmosphere, overall foot traffic is insufficient, and there is a lack of premium commercial anchors with strong market appeal.Between the northern and southern clusters, Yintai Department Store Hefei Binhu has traditionally followed a high-end department store model. However, its positioning does not fully align with the predominantly young and family-oriented customer base in Binhu, and it has been continuously adjusting its strategy since opening.Strategic positioning of the Binhu Baohui Project.By partnering with CR Vanguard Vanke Commercial, the Binhu Baohui Project occupies a central location connecting the northern and southern commercial clusters, aiming to establish a new shopping center that could break records as Hefei’s largest single Vanke Commercial property. This move reflects a careful and bold strategy.Looking back at Vanke Commercial’s decade-long investment in Hefei — from the first regional project Hefei Wucai City (now Hefei Shushan Vanke Mall) to the city-level commercial landmark Hefei Vanke City, and the revitalization of the Gedadian area with Hefei Baohe Vanke Mall — every project has succeeded, earning recognition from consumers, trust from local authorities, and cooperation from partners.

The Binhu Vanke Commercial project now assumes new responsibilities as a symbol of innovation and expertise.It’s reasonable to expect that the operator will tailor the project to the district’s cultural-tourism-commercial atmosphere, potentially delivering a next-generation Vanke Commercial product for Hefei.Future opportunities in Hefei’s commercial market.In recent years, leading commercial real estate operators have increasingly focused on Hefei. For example, Yintai Commercial Group actively partnered with Anhui Jindadi to rejuvenate Hefei Yintai in77 in the government district and plans Hefei Yintai inPARK, set to open in 2026 in the Economic Development Zone.Swire Properties, a well-known Hong Kong commercial operator, has also conducted on-site visits to Hefei. In 2023, during an exclusive interview with Aeon Mall (Hubei) Co., Ltd., CEO Mr. Junro Sakai was asked about expansion plans in central Chinese provincial capitals such as Zhengzhou, Hefei, Nanchang, and Taiyuan. Mr. Sakai expressed admiration for Hefei’s recent economic growth and investment achievements, noting that the city’s high-tech industries and well-educated population warrant high-quality commercial developments.With Hefei’s economic strength continuing to grow, its commercial market has significant potential. More leading operators and premium commercial projects are expected to enter Hefei in the near future. Even if Taikoo Li and Aeon Mall do not immediately establish a presence, encouraging developments are expected for the other challenging project, Hefei Suning Plaza.