Demand for retail properties in Guangzhou, capital of Guangdong province, dropped in 2013 due to increasing e-commerce sales, a report said.

Retail properties in the city decreased by 20,000 square meters from 2012 to about 250,000 square meters in 2013, according to a report by Jones Lang LaSalle Inc, a global real estate services and investment management company.

"The vacancy rate for retail properties was relatively high last year, following challenges from the robust development of e-commerce and changing consumer habits," said Sun Yanmei, associate director of the retail department of Jones Lang LaSalle Inc.

Sun said rentals and sales for retail properties will continue to decline in 2014 as retailers have adopted a cautious approach.