Photo taken on March 16, 2024 shows a Tiffany & Co store in Shanghai. [Photo/VCG]

Shanghai remains the focal point of the luxury market in China amid the recovery of the sector, as Hang Lung Properties, a Hong-Kong based property developer, reported a rise in full-year tenant sales and rental revenues on the mainland respectively compared to the previous year, according to its 2023 financial report ended on Dec 31, 2023.

On the Chinese mainland, although there was an initial rebound from a low base, Hang Lung Properties' tenant sales and rental revenue grew by 42 percent and 13 percent in the first half of the year, respectively.

The market continues to normalize with full-year tenant sales and rental revenue rising by 23 percent and 8 percent, respectively, according to the report.

Plaza 66 mall in Shanghai achieved solid growth in revenue of 10 percent, reaching 1.76 billion yuan ($240 million), with 24 percent rising in tenant sales, year-on-year.

Grand Gateway 66, generated revenue growth of 6 percent year-on-year, reaching 1.21 billion yuan, with tenant sales rising by 30 percent.

The two luxury malls in Shanghai ranked first and second on the group's Chinese mainland shopping malls, contributing a total of 59.2 percent of the group's revenue in malls on the mainland.

Unlike the independent luxury stores abroad, most luxury retail stores in China rely on local high-end shopping malls. Therefore, the performance of the high-end real estate properties can largely reflect the luxury consumption power of the region.

In 2023, China's luxury market saw a 12 percent yearly increase and is project to experience mid-single-digit growth in 2024, according to Bain & Company.