GRA Market Weekly (2025-05-24)

Policy Watch

PBoC: May LPR cut

On 20 May, the May loan prime rate (LPR) quotes were released: the over-5-year LPR came in at 3.5%, down from 3.6% the previous month, and the 1-year LPR at 3%, down from 3.1%. This is the first LPR cut of the year, with both the 1-year and over-5-year tenors lowered by 10 bps.

PBoC: RMB 500 bn MLF rolled over with a net injection

On 22 May, the PBoC announced an enlarged rollover of RMB 500 bn of medium-term lending facility (MLF), extending its pro-growth signal. The central bank had earlier released around RMB 1 tn of liquidity through a reserve requirement ratio cut.

Shanghai: Special Action Plan to Boost Consumption released

On 21 May, Shanghai released its Special Action Plan to Boost Consumption (the "Action Plan"). The plan comprises seven parts - six actions covering urban and rural income growth, consumption capacity support, service consumption upgrading, big-ticket consumption renewal, new consumption cultivation and consumption environment improvement, plus supporting policies - setting out 32 specific measures. It explicitly references "accelerating the build-out of a new development model for real estate", covering four aspects:

• Building "good homes" that are safe, comfortable, green and smart
• Accelerating the renovation of aging, run-down residential compounds, expanding the scope of the "Beautiful Homes" comprehensive refurbishment programme, and advancing old-compound renewal on a rolling basis
• Expanding affordable housing supply, in particular government-subsidised rental housing, tilted towards young residents
• Optimising tax and fee policies to support first-time and upgrade housing demand, and duly implementing tax policies that promote the stable and healthy development of the property market

Haikou: price-capped commodity housing tradable after five years

On 21 May, the Haikou Housing and Urban-Rural Development Bureau sought public comment on the draft Implementation Rules for Price-Capped Commodity Housing to Obtain Full Title and Enter the Market, governing full-title conversion and market trading of the city's price-capped commodity housing. Obtaining full title means that a price-capped home held for five years can be converted into ordinary commodity housing upon payment of the land premium differential and related charges under the rules; market trading means conversion and transfer to a third party under the same conditions. The draft proposes that price-capped homes held for less than five years may not, in principle, obtain full title or be traded on the market.

Market Watch

Shanghai: 57-hectare urban renewal blueprint unveiled for Laoximen Unit 01, Huangpu

Recently, the implementation plan for the Laoximen-01 renewal unit in Huangpu District (including local adjustments to related blocks under the district unit plan) was formally publicised. The renewal unit centres on the Laoximen area, spanning the Laoximen and Middle Huaihai Road sub-districts, bounded by Middle Fuxing Road and East Fuxing Road to the north, Jinan Road and Zhaozhou Road to the west, Zhonghua Road and Yingxun Road to the east, and Lujiabang Road to the south. Per the unit plan drawings, the area sits at the core of the Central Activities Zone, adjoining the Old Town heritage area, with the Xizang Road development axis running through it, covering a planned area of 57 hectares.

The unit contains high-end residential communities such as Fuxing Longyu and China Overseas' Jianguo Li. Blocks 096/097 form a residential, commercial and cultural mixed-use site acquired by Lianfa Group and Hong Leong for a total of c. RMB 9 bn: block 096 is planned for Category III residential and commercial use with residential towers of 135 m - super high-rise - while block 097 is a mixed villa and public-facility site, within which the Fazang Temple will be preserved. Blocks 280A and 283A form the Laoximen Daxing Street project developed by Zhongchong and Cinda, which will offer 315-400 sqm high-rise units and 400-800 sqm courtyard products.

Chengdu: three plots sold for RMB 1.011 bn

On 23 May, Chengdu's land market saw three residential-use plots offered, with total site area of 70,766.16 sqm, total planned GFA of 155,217.44 sqm and a combined starting price of c. RMB 785 m. Two plots ultimately sold at premiums - the highest at nearly 60% - and one at reserve price, for total proceeds of RMB 1.011 bn.

April home price data for 70 large and mid-sized cities

On 19 May, the National Bureau of Statistics released home price data for 70 large and mid-sized cities. In April, new home prices rose 0.1% MoM in Beijing and 0.5% in Shanghai, while Guangzhou and Shenzhen fell 0.2% and 0.1% respectively. New commodity home prices in tier-2 cities were flat MoM, unchanged from the prior month. In the secondary market, Shanghai rose 0.1%, Guangzhou was flat, and Beijing and Shenzhen fell 0.6% and 0.3% respectively. Secondary home prices in tier-2 and tier-3 cities both fell 0.4% MoM, with declines widening by 0.2 and 0.1 percentage points from the prior month.

Shanghai Yi Hao Yuan sells out again on launch day - the country's first RMB 10 bn project of 2025

On 21 May, Shanghai Yi Hao Yuan - the pinnacle luxury project at Xintiandi, Huangpu, jointly developed by CITIC, Xinhu and Sunac - launched its third batch, selling RMB 4.025 bn on the day with all 64 units sold out. The project has now recorded two successful launches this year, with cumulative annual sales of RMB 10.871 bn, making it the country's first project to surpass RMB 10 bn in sales.

Shanghai Yi Hao Yuan sits in the core of Huangpu's Old Town, one of Shanghai's most active luxury sub-markets, just 400 m from Xintiandi in a straight line and surrounded by core Shanghai landmarks such as Yu Garden and the Bund; such hard-to-replicate scarcity has made it a prime anchor for high-end purchasing power. Combining core location, scarcity and appreciation potential, the third batch's average price of RMB 185,000/sqm ranks it among the most competitively priced core-district projects on the market capable of locking in the city's future early; three consecutive sell-out launches also confirm market confidence in prime-location projects in core urban districts.

Project Watch

China Resources: shopping mall relisted for sale at a markdown

Recently, the China Beijing Equity Exchange disclosed that 100% equity of Runxin Commercial Development (Shenyang) Co., Ltd., together with related debt, has been relisted for transfer at a reserve price of c. RMB 178 m. This is the company's fourth listing this year, with the reserve price cut successively from RMB 357 m at the start of the year - a reduction of nearly 50%.

Runxin Commercial Development (Shenyang) is the owner of the Ledouhui Shopping Mall in Shenyang. Located in a core area of Dadong District with GFA of c. 82,800 sqm across five above-ground floors and three basement levels, the mall adjoins Exit C of Dongbei Damalu Station on Metro Line 10. The listing also reflects China Resources' strategic adjustment of its "Ledouhui" brand. Since fully taking over TESCO's China business in 2020, China Resources has progressively cleared low-efficiency legacy projects: some, such as the Ledouhui malls in Guangzhou and Fuzhou, were upgraded and rebranded as "Huanlesong", while most stores lacking conversion potential have been listed for disposal.

Vanke: debt-for-asset swap hands Onewo a Lujiazui mixed-use complex

Recently, listed company Onewo announced that on 31 March it acquired a 55% stake in Shanghai Xiangda held by Shanghai Vanke Investment, for an initial transfer consideration of RMB 870 m. Together with past transactions, Onewo will hold 100% of Shanghai Xiangda upon completion. Shanghai Xiangda's principal asset is a commercial-office complex along the Lujiazui riverfront in Shanghai. Built by Vanke Group with total GFA of c. 54,000 sqm, the complex comprises the 25-storey Binjiang Vanke Center office tower, the 4-storey Guanghe Xinzuo mall and a 2-level basement car park. Notably, Onewo secured 100% of Shanghai Xiangda in two steps through a debt-for-asset arrangement.

Centaline Investment: new student accommodation operating brand launched

On 14 May, Hong Kong's Centaline Investment announced the establishment of CampusOne Communities, a new student accommodation operating brand run by Centaline Management Services under Centaline Investment. CampusOne Communities aims to provide quality, safe accommodation and living experiences for higher-education students studying in Hong Kong, while helping owners convert suitable properties into student housing to generate better investment returns, targeting 3,000 beds within two years.

Chengtou Kuanting: Xuhui community officially opens

On 16 May, the Xuhui community of Chengtou Kuanting officially opened for operation. Located at No. 25, Lane 258 Caoxi Road, in the core of the Xuhui Central functional area, the community offers 1,283 units, with 546 released in the first batch. One- to two-bedroom layouts of 30-79 sqm are all delivered fully fitted. Notably, the Xuhui community is a landmark example of an acquisition funded with net proceeds recycled from the Chengtou Kuanting affordable rental housing REIT; the project was originally an existing asset developed by Huaxin Real Estate, revitalised through coordinated resource integration between municipal state-owned industrial groups.

Corporate Watch

SCE Group: Funlive apartments at SCE Tianyue, Shanghai sold for c. RMB 200 m

On 16 May, a local Shanghai company acquired SCE Group's Funlive apartments at SCE Tianyue in the Zhenru city sub-centre on the Middle Ring Road, via an equity transfer priced at c. RMB 200 m. The property has GFA of 7,457 sqm, hotel use designation and commercial-residential status, with 152 duplex apartments, essentially fully let at monthly rents of RMB 9,000-12,000 and annual rental income of c. RMB 17 m. The building rises 11 storeys above ground to a total height of 49 m with 4.5 m floor heights - all loft apartments, 12% one-bedroom and 88% two-bedroom.

Vanke: cooperation memorandum signed with Chengdu Industry Investment Group

On 23 May, media reported that Chengdu Industry Investment Group and Vanke (Chengdu) Enterprise Co., Ltd. recently signed a cooperation memorandum in Shenzhen. The two sides will cooperate in depth across carrier operations services, industry resource introduction, urban property development, and asset optimisation and upgrading, advancing the implementation of mature projects in Chengdu's core areas and supporting the city's upgrade.

Ascott: new franchise model launched, with Citadines 2.0 and a Yayuan brand refresh

On 16 May, Ascott China held its first franchise business showcase in Shanghai, launching its franchise model in China and unveiling Citadines brand 2.0 alongside a refresh and upgrade of its Yayuan brand. Leveraging its global leadership, local insight and curated solutions, Ascott is empowering serviced-apartment investment through its SUPER model; the two brand upgrades consolidate its market position, and drawing on its CapitaLand heritage, it will pursue a localisation strategy to deepen its presence in the China market.

New Huangpu: RMB 215 m acquisition of Silicon Valley SOHO Tower 2, Changping, Beijing

On 15 May, Shanghai New Huangpu Industrial Group Co., Ltd. announced the acquisition of Tower 2 of the Silicon Valley SOHO project in Changping District, Beijing, for a title consideration of RMB 215 m, or RMB 9,880/sqm on GFA of 21,759 sqm. The counterparty is Beijing Boxing Zhongye Real Estate Development Co., Ltd. The asset, at Tower 2, Yard 21 Zhongxing Road, Changping District, sits on commercial-office land; the building was completed in 2017 and is currently in bare-shell condition, with clear title but subject to a mortgage in favour of China Great Wall Asset Management's Beijing branch. For the transaction, New Huangpu's wholly owned subsidiary Shanghai New Huangpu Investment Management set up a wholly owned SPV, which is contributing RMB 215 m to acquire title to the asset. Total project cost is estimated at RMB 283.49 m, comprising the RMB 215 m purchase price, RMB 6.45 m of deed tax and RMB 62.04 m of fit-out and conversion costs.

New World Development: seeking to complete an HKD 87.5 bn loan refinancing by end-June

On 22 May, capital-market sources reported that New World Development Company Limited is seeking to complete the refinancing of HKD 87.5 bn (c. USD 11.2 bn) of loans by the end of June, in order to rapidly improve its liquidity position. The move is partly driven by a covenant waiver on New World's existing loans expiring next month; if the waiver lapses without a refinancing agreement, some banks could demand immediate repayment, although this is considered unlikely. The loan negotiation ranks among the largest refinancing efforts ever undertaken by a Hong Kong company.

Overseas Watch

One year after Hong Kong's stamp-duty removal, mainland buyers' purchase volumes and values hit record highs

According to the latest data from Centaline Property, since the Hong Kong government fully withdrew its "spicy measures" in February 2024 (i.e. removing the extra stamp duties and other curbs targeting non-local buyers), mainland buyers' purchase volumes and values in Hong Kong have both hit record highs. In 2024, Hong Kong recorded over 11,000 home purchase registrations by mainland buyers, far exceeding the previous record. In H1 2025, mainland-buyer registrations reached 6,117, up nearly 70% YoY - the highest since records began in 1995. Mainland buyers' total purchases exceeded HKD 130 bn in 2024, up 67% YoY; in H1 2025 they reached HKD 70.54 bn, up 42% YoY. Kai Tak is mainland buyers' district of choice in Hong Kong, mainly owing to: (1) a superior location - a core Kowloon district with convenient transport and multiple MTR stations and transport hubs; (2) comprehensive amenities - rich educational resources, shopping and leisure facilities, with area value further enhanced by the completion of Kai Tak Sports Park; (3) price advantage - relatively reasonable home prices, with purchase costs further reduced following the stamp-duty removal.