GRA Market Weekly (2025-05-05)

Macro Policy

National standard Residential Project Code released, effective 1 May

The new code takes the residential project as a whole as its subject, targeting safety, comfort, green performance and smart features, and sets out requirements for the construction, use and maintenance of residential projects in terms of scale, layout, function, performance and key technical measures. Principal provisions include:

Floor-to-floor heights of no less than 3 m in new residential buildings, with lifts required in buildings of four storeys and above
Enhanced sound insulation performance for walls and floor slabs
Increased clear passage width for entrance doors and bathroom doors
Increased railing heights at balconies and other exposed edges
Public mobile communications coverage required in common areas and lift cars
Outdoor air-conditioning units required to be installed on dedicated platforms
Specified heating and air-conditioning installation requirements for different climate zones

Shanghai: new housing provident fund policy for flexibly employed workers, effective 1 June

The Shanghai Housing Provident Fund Management Committee recently issued the Implementation Measures for the Voluntary Contribution, Withdrawal and Use of the Housing Provident Fund by Flexibly Employed Persons in Shanghai (Shanghai Provident Fund Management Committee [2025] No. 1, the "Implementation Measures"). The Measures confirm that flexibly employed persons in the city who voluntarily contribute to the housing provident fund are entitled, as prescribed, to rights including applying for provident fund mortgages when purchasing a home. There is no household registration restriction: locally registered residents, residents registered in other provinces and municipalities, residents of Hong Kong, Macau and Taiwan, and foreign nationals who are flexibly employed in Shanghai may all participate. The Measures take effect on 1 June 2025.

Targeted Policies

Shanghai: fourth season of "Government-Subsidised Rental Housing Graduation Campus Tour" launched, with over 10,000 units assembled

On 27 April, the fourth season of the "Government-Subsidised Rental Housing Graduation Campus Tour", a special housing security campaign for university graduates, was launched. Themed "Youth Setting Sail, Building Dreams in a Settled Home", it focuses on new university graduates in Shanghai, using zoned dedicated events and combined online and offline outreach. Four offline supply-and-demand matching sessions are scheduled as follows:

27 April: Tongji University (Siping Road campus)
9 May: Shanghai Polytechnic University (Jinhai Road campus)
16 May: Shanghai Jiao Tong University (Minhang campus)
23 May: Shanghai University of International Business and Economics (Songjiang campus)

For this campaign, the organisers have assembled a pool of conveniently located, appropriately configured and reasonably priced government-subsidised rental housing, targeted at new university graduates in Shanghai facing housing difficulties. In line with the city's actual construction and supply of government-subsidised rental housing, over 10,000 units across more than 70 projects have been assembled. Unit mix is dominated by one-bedroom and divisible two-bedroom layouts, with some dormitory-style beds also available for graduates to rent. On pricing, most units are offered at monthly rents of around RMB 2,500-3,000, and some project owners are running one-year concentrated rent concessions for new graduates, alongside measures such as "discounts on discounts" and "first-month and first-year offers".

Market Watch

Hangzhou: six residential plots fetch RMB 12.576 bn amid intense competition for core-area sites and widening polarisation

On 28 April, Hangzhou offered six residential-use plots covering the Kangqiao unit, Shuangpu depot, Century City core unit, Xiaoshan urban Shibei unit, West Railway Station New Town unit and Development Zone unit, with total site area of 402,060 sqm, total planned GFA of 573,289.6 sqm and a combined starting price of RMB 10.276 bn. Four plots ultimately sold at premiums and two at reserve price, with the six plots raising RMB 12.576 bn in total at an overall average premium of 22.4%.

The auction showed a clearly polarised pattern: premium rates diverged markedly between core plots (Century City, Shibei) and peripheral plots (Shuangpu, Qiantang), with developers still cautious and focused on low-risk, fast-turnover projects. Local developers dominated and actively replenished land banks: Binjiang Group secured the Xiaoshan urban Shibei unit, West Railway Station New Town unit and Kangqiao unit plots, replenishing its pipeline to hold market share; Jianhang Real Estate took the Development Zone unit plot; while non-local state-owned players Poly Developments and C&D Real Estate took the Century City and Shuangpu plots respectively.

Shanghai: seven-plot Yuqingli package on Jinling Road, Huangpu transferred by agreement for RMB 7.327 bn, at an accommodation value of c. RMB 81,500/sqm

The seven-plot package at Yuqingli on Jinling Road in Huangpu District was recently transferred by agreement, with Shanghai Huangpu Urban Renewal Construction & Development Co., Ltd. acquiring it for RMB 7.32654 bn. The company is a joint venture between Jin Bund Group (40%) and Shanghai Land Group (60%). The transfer adopts a "place-linked" model, with an equity transfer to follow on the Shanghai United Assets and Equity Exchange. The Yuqingli land package sits west of the Kerry Jinling East project and east of the Great World, with the urban renewal scope covering the former Yunnan Road food street; it is the second-largest project in the Jinling Road urban renewal programme. The seven plots have total plot-ratio GFA of c. 89,800 sqm, implying an accommodation value of c. RMB 81,500/sqm on the RMB 7.32654 bn consideration, comprising:

Super high-rise residential and heritage villas: 39,400 sqm
Rental housing: 7,400 sqm
Office: 13,200 sqm
Retail: 29,400 sqm

Shanghai new home market stays hot as the "little spring" run continues: Feiyun Yuefu draws a 412% subscription rate

On 27 April, Feiyun Yuefu (registered name: Feiyun Mingting), a hot project in the Xinyangsi area of Pudong New Area, held its offline launch. The project released 228 units in its first batch and sold out on the day on the strength of its location and product quality. Feiyun Yuefu offers mid-rise homes of c. 120-140 sqm GFA at an approved average price of RMB 107,200/sqm. The first launch drew 939 subscriptions for a subscription rate of c. 412%, a new high for any Shanghai new project this year, with a qualifying score of nearly 64 points - also the highest so far this year.

The project is developed by a consortium of China Resources Land, Yuexiu and China Energy Engineering. On 27 November 2024, the consortium won the site for RMB 7.897 bn at an accommodation value of RMB 74,426/sqm and a premium of 40.37%, making it the focal plot of that year's land auctions. It is also the first project in the city to trigger the "high-quality construction" bidding metric since the introduction of the "dual-high, dual-bid" transaction rules.

The project sits in the prime Xinyangsi location inside Pudong's Middle Ring Road. As a core area of Pudong's "Golden Middle Ring" development belt, Xinyangsi enjoys a strong locational advantage, with core urban districts such as Qiantan, Expo and Lujiazui all within three kilometres - a scarce address within Shanghai's main urban area.

Project Watch

Wuhan: Huafa Youshenghuo opens its Huayi Huafa Siji store in Dongxihu

On 29 April, the Huayi Huafa Siji store in Wuhan officially opened. The store sits in a core location in Dongxihu District, close to the metro and surrounded by bus routes. Amenities are comprehensive and all-encompassing, and with state-owned enterprise operation residents can rest easy.

Corporate Watch

Greystar: acquires Madrid development site, adding 458 flexible-living apartments

On 28 April, Greystar announced it had acquired a development site in Madrid, Spain from Bermejo & Williamson ("BWRE"), adding 458 apartments to its expanding flexible-living business. The project has municipal permits in place and has secured a EUR 56.1 m construction loan from Eldridge Real Estate Credit.

The site is located in Boadilla del Monte, an upmarket residential district of Madrid, with completion expected in 2027. The project will add a mix of studio, one-bedroom and two-bedroom apartments to Greystar's "Be Casa" brand. Greystar extended the brand to Barcelona and Bilbao in January 2025 and currently operates over 5,000 fully fitted apartments.

Shenzhen Metro Group joins Vanke and Huawei in signing the 2025 strategic cooperation agreement

On 28 April, Shenzhen Metro Group, Vanke Group and Huawei signed the 2025 version of their strategic cooperation agreement at Huawei's Bantian campus, marking a continued deepening of the strategic partnership. Since Shenzhen Metro Group and Huawei first signed a strategic agreement in 2018, the two sides have delivered results across digital transformation, technological innovation, cloud computing and big data, and network communications. The renewal marks a continued "strength-with-strength" pairing between Shenzhen Metro Group and Huawei to broaden and deepen cooperation, with extensive, in-depth and comprehensive collaboration across digital transformation, metro, intercity rail, transport hubs, real estate, commercial operations and logistics.

Lamborghini: 31 units at its first China apartment project listed as a package

On 25 April, information from the Shanghai United Assets and Equity Exchange showed that 31 apartments at Lamborghini's first high-end real estate project in China - Lamborghini Centre Chengdu - have been listed for transfer as a package, following a prolonged construction halt by developer Chengdu Donghe Real Estate Co., Ltd. Lamborghini Centre Chengdu occupies a core location on Section 1 of South Renmin Road in Qingyang District, with total GFA of 230,000 sqm across Tower A (hotel plus apartments) and Tower B (apartments). The transfer covers 31 lots ranging from just over 70 sqm to more than 500 sqm, all designated for commercial-office use. One 232.51 sqm apartment saw its valuation fall from an initial RMB 10.7666 m to an opening auction price of RMB 6.04 m, or c. RMB 26,000/sqm - close to half its launch price. Property management fees run as high as RMB 15/sqm, reflecting the project's high-end positioning.

Evergrande: Hong Kong court hands down key liquidation ruling, excluding economic interest holders

On 2 May, China Evergrande issued a further announcement on its liquidation, disclosing that the High Court of Hong Kong had on 17 April handed down a key ruling in the China Evergrande Group liquidation proceedings, confirming that only statutory creditors may participate in or serve on the liquidation oversight body, with holders of economic interests excluded. The court also supported the liquidators in excluding shareholders from decision-making. Evergrande shares will remain suspended.

Market Data

Shanghai secondary market stabilises: 23,416 transactions in April, up c. 29% YoY

Shanghai recorded 23,416 secondary home transactions in April, down c. 20.27% from March's 29,369 but up c. 29% from 18,101 in April 2024. Daily average transactions were 780, down c. 17.63% from March's 947 and up c. 29% from 603 in April 2024. The citywide base price across residential compounds was c. RMB 55,953/sqm in April, down 8.48% YoY and 0.53% MoM. The market continues to trade price for volume.

Q1 national real estate en-bloc transactions: 71 deals totalling RMB 44.8 bn

National real estate en-bloc transactions in Q1 totalled 71 deals worth RMB 44.8 bn, broadly flat YoY. By region, East China (RMB 20.5 bn) dominated with a 46% share, followed by South China (RMB 15.3 bn) and North China (RMB 7.0 bn). Notably, East China's strength stemmed not only from Shanghai (RMB 18.5 bn, 41% of the national total) but also from significant contributions by disposals of industrial property and business park assets in Zhejiang and Jiangsu, highlighting regional economic resilience and industrial clustering effects.

By source of capital, financial institutions - banks and insurers - led transaction value by a wide margin. Private enterprises were active by deal count; while individual ticket sizes were smaller, the asset types involved were more diverse, spanning business parks, retail and other segments. Local government platform companies were also frequently active, reflecting the policy orientation towards state-capital backstopping and the revitalisation of existing assets.