I agree 100%. I spent much of the past decade living in either...

I agree 100%. I spent much of the past decade living in either Shanghai or Beijing. I returned to Australia early last year for obvious reasons e-commerce in China is on an unimaginable scale. It's easy to see how the ASIA tech ETF with Tencent, Alibaba, etc. has done so well since it was established! They're so far ahead of Australia in terms of the use of technology and delivery networks. It's hard to imagine unless you've experienced it. When you've got compact cities of 20 million people, high density living, and unlimited low-paid delivery workers from the surrounding provinces it gives retailers a huge advantage over smaller western countries.

However the malls still thrive and retail shops don't seem to turn-over at all despite the rent being expensive. The company I've been working for has struggled with paying the rent and sought to renegotiate contracts with mall landlords. Its offices (mostly located in shopping centres) are still closed in Beijing today due to government regulations because of Covid.

It's the same in Thailand where the massive food courts at Terminal 21 in Pattaya and Bangkok are always busy despite locals using the Grab app for online ordering. I usually fly between China and Australia via Bangkok and find these malls themselves to be an experience. Even the men's bathrooms are amazing. Check out the pictures through Google if you haven't been there!

I suspect that quality, well located assets will win the day. Also, SCG's large parcels of prime land are very handy considering the inflationary pressures on real estate. The Charter Hall REITs CLW and CQE have recently announced approximately 10% increases in NTA due to property re-valuations. I don't mind the 5% SCG dividend at all, and the prospect of being exposed to these NTA increases.