Is glut developing in retail building sector?

China is facing an oversupply in the retail property markets in major cities, where a surplus of space is outstripping demand from urban residents and an expanding middle class, according to a new report.

Despite a rapid growth in retail sales, less-experienced developers could soon be learning a hard lesson from a market with a supply glut, says a retail property trend report released by Cushman & Wakefield, the world's largest privately held real estate services company.

The report forecast that the new supply of commercial properties in 30 cities that it monitors will total 75 million square meters, and a peak of new supply with more than 20 million sq m will flood the market this year.