The ‘Top Luxury’ Challenge for China Overseas Commercial

In Shanghai’s commercial landscape, China Overseas Land and Investment (COLI) has always been a pragmatic player. This pragmatism, for a long time, has been interpreted as stability, even conservatism. Looking at the Putuo Zhenru area, the success of the China Overseas Huanyu City MAX is undoubtedly the pinnacle of this pragmatic approach. It has captured and even fully addressed the pain points of regional family consumption, building a massive and stable cash flow machine.On the residential side, COLI achieved a staggering 70.2 billion RMB in sales in Shanghai, and its significant investments in the land market have yielded rare, high-value plots in locations like Dong Siwenli and Xuhui Riverside. Recently, the “national land king” in Xuhui Riverside, Anlan Shanghai, launched at 178,800 RMB per square meter, achieving a 159% subscription rate, positioning it as a top-tier lifestyle offering for the city’s elite. Similarly, China Overseas Huanyu Jiuzhang in the Zhenru district of Putuo saw a 234% subscription rate for its 90 units, becoming one of the most popular residential projects at the end of the year. Holding multiple high-end residential and commercial plots, COLI’s residential and clientele have already entered the realm of luxury and even ultra-luxury living.Now, the question is whether China Overseas Commercial is ready to leap into a role where it can define top-tier lifestyles and fully unlock the commercial value of these high-value plots.Pragmatism’s Victory and the Traffic Secret of the Zhenru Model.

The current capabilities of China Overseas Commercial in Shanghai are largely built on two major product lines: Huanyu City, focused on mass-market family consumption, and Huanyu Hui, which is designed for business services. Zhenru Huanyu City MAX is a representative regional commercial project. With a total commercial area exceeding 320,000 square meters, it has become one of the most influential commercial properties in Putuo, rivaling the Global Harbor mall. COLI has shown a strong “city-building” logic here.Starting with the acquisition of the Hongqi Village redevelopment land in 2018, COLI used the concept of a “great square kilometer” as its blueprint for the integrated development of super-class office buildings, theaters, apartments, green corridors, and commercial spaces. This deep integration of urban renewal and commercial development has paid off handsomely. According to reports from Shanghai Putuo, the foot traffic in 2025 is expected to exceed 28 million, with sales surpassing 6.2 billion RMB. In fact, Lululemon set a new single-day sales record of over 1.6 million RMB.Behind these figures lies COLI’s holistic approach to satisfying the needs of middle-class families in the region. The success of Zhenru Huanyu City MAX essentially boils down to three factors: “precise location selection, strong anchor tenants, and comprehensive industry coverage.” Sam’s Club anchors the project, targeting high-frequency, essential buyers with purchasing power.

The retail mix doesn’t need to be dominated by avant-garde art or luxury retail; it’s about creating a highly dependable, family-friendly destination with daily, accessible experiences.A Commercial Landscape for High-End Living.As China Overseas Real Estate continues its expansion in Shanghai, particularly with the frequent introduction of high-end and luxury residential projects, the rising demand for commercial spaces has become a new challenge. Xuhui Riverside’s “Anlan Shanghai” with its 195-400 sqm units, the luxurious high-rise “cloud homes” and villas planned at Jingan Dong Siwenli, and low-density projects on Yunjin Road—all embody the ultimate vision of residential quality for Shanghai’s elite.Accompanying these projects is the substantial commercial component, including 60,000 square meters of stone gate-style commercial space at Dong Siwenli, 30,000 square meters of commercial streets at Anlan Shanghai, and exquisite commercial streets modeled after Hongshoufang in Zhenru Huanyu Jiuzhang. How can the commercial value of these luxury properties be.realized? This is the key to further development for China Overseas Commercial.If Zhenru Huanyu City MAX represents China Overseas Commercial’s top-tier regional commercial success, then now, with projects like Jingan Dong Siwenli and Xuhui Riverside, the stakes have dramatically changed. These properties represent a “mathematics competition” with no standard answers. Looking at the value of these plots, any commercial real estate developer would feel both excited and pressured.Jingan Dong Siwenli contains Shanghai’s most complete set of preserved traditional Shikumen buildings and is located near Nanjing West Road.

It includes 60,000 square meters of historic protected structures, a cultural treasure of Shanghai, akin to Swire Properties’ Zhang Yuan and Ruian New World, which belong to a similar class of urban heritage. For China Overseas, this presents a massive challenge, as few of its past successful experiences have involved such deep cultural and historical commercial projects.On the other hand, Xuhui Riverside’s Anlan Shanghai holds the prestigious “national land king” title and offers elite 195-400 square meter luxury configurations. Here, Shanghai’s skyline meets global capital, and the associated 30,000 square meters of commercial space must meet the demands of an extremely discerning high-net-worth clientele.Recently, Yongye Group, in collaboration with China Overseas, acquired additional land in Shanghai’s Huangpu District for expansion. The 71 Block will feature two 150-meter towers and one 82-meter residential building, along with 14 commercial villas.Similarly, Zhenru Huanyu Jiuzhang, with its 160,000 square meters of mixed-use space, will integrate residential, park, and commercial offerings, introducing sophisticated dining, cafes, bars, and other commercial experiences. These projects represent non-standard commercial solutions designed to cater to the daily needs of residents while enhancing their overall living experience.Commercial Fit for Ultra-Luxury Living.These high-end community-based commercial setups need to not only meet the daily needs of residents but also elevate the overall quality of life and residential experience. These projects are all bespoke, meant to match the cultural landmarks, global lifestyle standards, and high-quality community operations of Shanghai.

Such an undertaking is no easy task.China Overseas Commercial must now match its high-end residential expertise with equally sophisticated commercial offerings. In its past residential successes, it has demonstrated a remarkable ability to manage ultra-luxury properties, but in the commercial domain, this leap has yet to occur.Currently, China Overseas Commercial’s product lines, whether it’s Huanyu City, Huanyu Hui, or Huanyu Fang, seem primarily focused on mid-tier and mass-market consumption. However, the company has yet to create a “flagship” commercial brand specifically designed for prime locations and high-net-worth customers. The lack of such a brand could be seen as a gap in the market.Imagine a homeowner who spends hundreds of millions on a luxury residence in Xuhui Riverside. When they step out, they’re expecting more than just a Sam’s Club or a run-of-the-mill restaurant street. They need Michelin-starred private dining, high-end curated boutiques, top-tier art galleries, and commercial experiences that align with their social circles. The commercial offering should be an extension of their lifestyle and status.For China Overseas Commercial, this is both a pressure point and an invaluable opportunity to break through. Perhaps what’s needed is a new level of commercial imagination—perhaps a brand new high-end commercial identity or an evolved version of their existing product lines, similar to how China Resources Land did with Wanda Mall. China Overseas must develop a commercial symbol that resonates with the Nanjing West Road and Xuhui Riverside ambiance.By mid-2025, China Overseas will have more than 30 shopping centers in 15 cities across China. Yet, the next phase of China Overseas Commercial is just beginning.