GRA Market Weekly (2025-06-21)

Policy Watch

State Council executive meeting: stronger action to halt the property market's decline and restore stability

On 13 June, Premier Li Qiang chaired a State Council executive meeting. The meeting specifically called for a nationwide review of land already supplied and projects under construction, further optimisation of existing policies to make implementation more systematic and effective, and a multi-pronged effort to stabilise expectations, activate demand, optimise supply and defuse risks, so as to push harder for the property market to stop falling and stabilise. Notably, compared with the wording of last year's Central Economic Work Conference and this year's Government Work Report - "sustained efforts to halt the decline and stabilise the property market" - the phrasing of this executive meeting signals markedly greater intensity.

NDRC: RMB 80 bn to support urban renewal

The National Development and Reform Commission recently allocated RMB 80 bn of central budget investment under its dedicated urban renewal programme, supporting the renovation of aging urban residential compounds and dilapidated urban housing nationwide, covering c. 5.5 m households and benefiting c. 17 m residents, to improve living conditions and strengthen residents' sense of gain, happiness and security. Previously, to advance the new urbanisation strategy and enhance urban safety and resilience, China had arranged RMB 135 bn of 2025 ultra-long special treasury bonds under the "dual-priority" programme (implementation of major national strategies and security capacity building in key areas), supporting the construction and upgrading of c. 148,000 km of underground gas, drainage, water supply and heating pipelines.

Market Watch

Shanghai's fifth-batch land auction raises RMB 21.257 bn; East Bund floor price record broken in Yangpu

On 19-20 June, Shanghai's fifth-batch land auction kicked off, with six plots sold across Yangpu East Bund, Minhang Zhuanqiao, Baoshan Nanda, Qingpu Xujing, Jinshan New Town and Pudong Caolu, for a total area of 313,700 sqm and total consideration of RMB 21.257 bn. Highlights:

• Poly Developments took two plots, in Yangpu East Bund and Minhang Zhuanqiao. The East Bund plot drew six bidders and consortia - Shanghai Urban Construction, China Overseas, Poly Developments, Yuexiu, China Merchants & Caitou, and CR Land & China Energy Engineering - and was ultimately won by Poly Developments at a 30.79% premium and a floor price of RMB 95,530/sqm, a new record for the East Bund area. Located within Yangpu's Inner Ring, the plot combines core-location value with a purely residential setting, c. 100 m from Pingliang Station on Metro Line 18 and c. 400 m from Jiangpu Park Station on Lines 12 and 18, within 15 minutes of the Bund, Lujiazui and other core business districts. The nearby Poly BUND98 project sold out on launch day with a 244% subscription rate, underscoring strong local purchasing power.
• China Construction Dongfu took the mega plot in Baoshan Nanda, comprising six sub-plots with total GFA of 320,000 sqm (residential c. 210,000 sqm; commercial-office c. 112,000 sqm) - the largest plot offered in Shanghai's land market this year - for a final total of c. RMB 8.195 bn, or a floor price of RMB 25,488/sqm.
• C&D Inc. took a low-density residential plot in Jinshan New Town, bringing new supply to the district's upgrade market.
• Lianfa Group took the Caolu science-education park unit (PDP0-0306) in Pudong, c. 800 m from Jinhai Road Station on Lines 9 and 12. After 67 bidding rounds the plot reached the first-stage cut-off price of RMB 2,075.4 m and entered the quality-competition stage; the cap was reached again, triggering a second bidding stage. Shanghai Lianhong Real Estate Development (Lianfa Group) ultimately prevailed with a total price of RMB 2,100.4 m, plus a commodity-housing fit-out standard of RMB 4,500/sqm (centralised procurement price), 5,220 sqm of public service facilities (plot-ratio counted) and a 2% high-end talent housing allocation - a floor price of RMB 33,957/sqm at a 41.68% premium.

Shenzhen: Longhua plot clears at a 46.55% premium

On 19 June, Shenzhen sold one residential plot of 10,900 sqm for RMB 1.212 bn, a floor price of RMB 44,559/sqm. Located in Minzhi Sub-district, Longhua District, it was won by Shenzhen Lianyue Real Estate Development at a 46.55% premium.

Chengdu: Jinjiang plot clears at a 75.74% premium

On 19 June, Chengdu sold two residential plots totalling 62,100 sqm for RMB 3.837 bn. Chengdu Tongyue Real Estate won Plot 1 in the Yixinqiao area of Jinjiang District at a 75.74% premium, with the floor price reaching RMB 35,500/sqm.

Beijing: Xiaomi takes an industrial plot in Yizhuang New Town for RMB 635 m

On 19 June, per the website of the Beijing Municipal Commission of Planning and Natural Resources, industrial plot 0110 in block YZ00-0606 of Yizhuang New Town sold for c. RMB 635 m to Xiaomi Jingxi Technology, which is wholly owned by Xiaomi Intelligent Technology. The listing documents show the plot is supplied with utilities connected and site levelled ("six connections and one levelling"), zoned for industrial use with a 50-year grant term and a site area of 485,100 sqm.

Project Watch

Jianwai SOHO, Beijing: partial office transaction completed

On 13 June, Feiyu Technology (01022.HK) announced that the group, through Beijing Jialike as buyer, entered into an agreement with the sellers (Yang Jing and Yang Fucen) and the agent (Beijing Anxin Yihe Real Estate Brokerage) to purchase properties for RMB 50.3 m. The properties are all located at 39 East Third Ring Middle Road, Chaoyang District, Beijing, comprising units B-3001, B-3002, B-3003, B-3004, B-3005 and B-3006 of Building 23 (office units) and three parking spaces, with total GFA of 1,770.22 sqm and 129.53 sqm respectively.

The properties sit in Jianwai SOHO, on Chang'an Avenue directly opposite the China World Trade Center and close to Guomao Station on Metro Lines 1 and 10. The complex occupies a 12.28-hectare site with total GFA of c. 700,000 sqm, comprising 18 apartment towers, 2 office towers, 4 small SOHO office buildings and extensive podium space, with amenities including a kindergarten and a clubhouse.

Suzhou Asset Management acquires 98 commercial units in Huangpu District, Shanghai

Per recent disclosures on JD's asset trading platform, 98 commercial units at Nos. 1-98, Lane 199 Hubei Road, Huangpu District, Shanghai (Zhongfu Antique City) sold for c. RMB 150 m against an appraised value of c. RMB 268 m. The winning bidder, Shanghai Fumairun Enterprise Management, is ultimately controlled by Suzhou state-owned enterprise Suzhou Asset Management Co., Ltd. Located in the Nanjing Road commercial area and opened in 2006, the antique mall holds significant influence and standing in Shanghai's antiques trade, hosting dozens of exhibitions and trade fairs each year.

Corporate Watch

Shinsun Holdings: 2.247 bn shares put up for auction

On 13 June, the Hong Kong High Court, pursuant to two court orders issued in 2023 and 2024, moved to compulsorily dispose of 2,246,597,000 ordinary shares of formerly listed Shinsun Holdings by open tender. The shares are offered in three tranches of 1,174,597,000, 1,002,000,000 and 70,000,000 ordinary shares. The company, incorporated in the Cayman Islands (Hong Kong company no. P27968), was formerly listed on the HKEX Main Board, suspended in 2019 amid a debt crisis and formally delisted in 2024.

Beijing Capital Development secures RMB 2.5 bn relief from CITIC Financial AMC

On 13 June, Beijing Capital Development announced that its wholly owned subsidiary Beijing Urban Development Group would transfer its entire interest in Beijing Shouxin Fengtai Management Consulting Partnership (L.P.) to China CITIC Financial Asset Management, which has committed RMB 2.5 bn to this relief package.

Beijing Capital Group is the largest property development platform under the Beijing SASAC, and the only "dual-Olympics" developer to have participated in building the athletes' villages for Beijing's Asian Games, Universiade and Olympic Games, as well as the "Ice Ribbon" speed-skating oval for the Winter Olympics.

The "substantive restructuring" proceeds as follows: Beijing Urban Development first transfers its entire interest to CITIC Financial AMC for RMB 399 m; after CITIC Financial AMC replaces Beijing Urban Development as limited partner of Shouxin Fengtai, Beijing Capital Development and CITIC Financial AMC inject capital pro rata - RMB 3.15 bn and RMB 2.1 bn respectively. CITIC Financial AMC has also designated Beijing Rongkaide Investment Management as general partner, with a subscribed contribution of RMB 1 m. Post-injection, the subscribed interests of Beijing Capital Development and CITIC Financial AMC in Shouxin Fengtai remain at 6:4, at RMB 3.75 bn and RMB 2.5 bn respectively. Beijing Capital Development said the transfer aims to bring in financial-institution partners, revitalise existing assets and optimise capital reserves, in line with its sustainable development strategy.

New World Development declares default

Recently, Hong Kong developer New World Development deferred interest payments on some of its perpetual bonds, sending its shares and bonds sharply lower and heightening investor concerns over its liquidity. The company is grappling with debt of as much as HKD 210.9 bn; in a filing submitted on 30 May, it said it planned to defer coupon payments on four perpetual notes, deferring a total of USD 77.2 m.

New World has sold assets several times this year under mounting pressure. In March, it signed a commercial property sale agreement with Chinachem Group to sell its entire interest in the Discovery Park mall and car park in Tsuen Wan, Hong Kong, for a total cash consideration of HKD 4.02 bn, covering c. 630,000 sq ft of commercial space and a 1,000-space car park. In June, it sold a 30% stake in Tin Tak Development - involving a 43-storey office tower (the Chow Tai Fook Finance Tower in Qianhai, Shenzhen) and a car park - to a related party, booking a gain of c. HKD 113 m.

CCCG Real Estate formally divests its property development business

On 16 June, CCCG Real Estate published a draft report on a major asset sale and connected transaction, under which it will transfer the assets and liabilities of its property development business to controlling shareholder CCCG Real Estate Group Co., Ltd. for a token price of RMB 1.

Per the draft restructuring plan, the transfer covers the full property development chain, including controlling and minority stakes in development companies together with the corresponding receivables and liabilities. Per the asset appraisal report, as of 31 December 2024 the target assets had a net book value of RMB -3.919 bn and an appraised value of RMB -2.976 bn, a 24.06% appraisal uplift.

On the sale, CCCG Real Estate said the property development business is capital-intensive and highly leveraged; once the transaction completes, the target assets will no longer be consolidated, the listed company will shift "from heavy to light", and its total assets, revenue and other metrics are expected to decline substantially.

Shui On & Tian An bid for equity in the project company behind the RMB 20 bn Yongye Xintiandi East plots

On 19 June, Shui On Land and Tian An China Investments each announced the formation of a joint venture to bid, in the JV's name, for the 50% stake in Shanghai Yongye Urban Renewal Construction & Development listed for transfer by Shanghai Yongye Enterprise (Group). The JV, Shanghai Ruitianli, is funded with RMB 3 m by Shui On's wholly owned subsidiary Shanghai Ruixinli (30%) and RMB 7 m by Tian An China subsidiary Shanghai Xinfuli (70%). The partners intend to jointly develop three commercial-residential plots in Xintiandi East, Huangpu, valued at RMB 20 bn.

Qianlong Plaza, Qiantan, Shanghai: RMB 1.4 bn claims back on the block

On 9 June, JD's asset trading platform listed a major asset disposal: China Great Wall Asset Management's Shanghai branch plans to dispose of claims related to Fusheng's Qianlong Plaza in Qiantan, totalling c. RMB 1.4027 bn, drawing strong market attention.

The claims comprise principal of c. RMB 1.075 bn and interest of c. RMB 327.7 m. The collateral package - at 488 Yangsi West Road and Nos. 1-2, Lane 39 Jianggao Road, Pudong, including the basement car park - is notable: the offices, shops, parking and residential units under mortgagor Yicheng Group Shanghai Investment total 53,005.95 sqm of GFA, all having passed completion acceptance and obtained full strata title certificates, with complete and clean ownership.

Notably, Qianlong Plaza holds a special place in the development history of Shanghai's Qiantan area: it was the first plot granted under the Qiantan development plan, and its progress has been closely watched. Fusheng Group acquired the project from HNA Investment for a hefty RMB 2.9 bn in 2018. The property went through two judicial auctions, in November 2023 and January 2024, with reserve prices of RMB 1.5 bn and RMB 1.2 bn respectively, both of which failed to attract bids.

NBS releases May data on the national economy and the property sector

On 16 June, the National Bureau of Statistics released May data on the national economy and real estate. The property sector continues to move towards halting its decline and stabilising. Key data:

• Sales broadly stable: new home sales area of 353.15 m sqm in the first five months, down 2.9% YoY; commodity housing sales of RMB 3,409.1 bn, down 3.8% YoY
• Year-on-year declines in new commodity home prices continued to narrow
• Unsold commodity housing inventory at end-May fell by 7.15 m sqm from end-April, the third consecutive monthly decline
• January-May nationwide property development investment of RMB 3,623.4 bn, down 10.7% YoY, flat with January-April

NBS spokesperson and Director of the Department of Comprehensive Statistics Fu Linghui said at a State Council Information Office briefing that in the next phase, China will "proactively adapt to the reality of a major shift in housing supply-demand dynamics, continue to advance urban renewal and dilapidated housing renovation, step up the construction and supply of 'good homes', promote the release of first-time and upgrade housing demand, actively build a new development model for real estate, and promote the stable and healthy development of the property market."