GRA Market Weekly (2025-07-26)

Policy Watch

PBoC: real estate lending growth picks up in Q2

PBoC data show that outstanding RMB real estate loans stood at RMB 53.33 tn at end-Q2 2025, up 0.4% YoY, with growth 0.6 pp higher than at end-2024 and an H1 increase of RMB 416.6 bn. Outstanding property development loans reached RMB 13.81 tn at end-Q2 2025, up 0.3% YoY, an H1 increase of RMB 292.6 bn. Outstanding individual mortgage loans stood at RMB 37.74 tn, down 0.1% YoY - growth 1.2 pp higher than at end-2024 - with an H1 increase of RMB 51 bn.

State Council promulgates the Housing Leasing Regulation, effective 15 September

Premier Li Qiang recently signed a State Council decree promulgating the Housing Leasing Regulation, which takes effect on 15 September 2025. The Regulation aims to standardise housing leasing activities, protect the lawful rights and interests of the parties involved, stabilise tenancy relationships, promote high-quality development of the rental housing market, and accelerate the establishment of a housing system that places equal weight on renting and owning.

MOHURD: renovation of 16,500 aging urban residential compounds commenced nationwide in H1

On 23 July, MOHURD announced that renovation works commenced on 16,500 aging urban residential compounds nationwide in January-June 2025, with six regions - Hebei, Liaoning, Chongqing, Heilongjiang, Shanghai and Fujian - reporting commencement rates above 80%. For 2025 as a whole, China plans to commence renovation of 25,000 compounds.

CSRC: coordinating the resolution of developer bond defaults while supporting a new development model for real estate

On 24 July, the CSRC held its system-wide Party building and 2025 mid-year work conference. The meeting stressed continued improvement in regulatory enforcement - targeting major, egregious and high-priority cases, strengthening regulatory coordination, enhancing tech-enabled supervision, improving enforcement quality and effectiveness, and firmly punishing violations in capital markets. It called for precise prevention and control of risks in key areas of the capital markets: coordinating the resolution and disposal of developer bond default risks while supporting the construction of a new development model for real estate; steadily advancing the resolution of local financing platform debt risks and their market-based transformation; and cracking down on private fund violations and illegal securities and futures activities. The meeting also pledged steady progress on high-standard institutional opening - systematically refining the overall layout and implementation path for capital market opening, implementing key unilateral opening measures in a prudent and orderly manner, promoting coordinated development of onshore and offshore markets, and continually expanding cross-border cooperation in capital markets - and called for enhancing the authority and influence of research on major capital market issues to better serve national strategy and regulatory needs.

Targeted Policies

Chengdu: phased removal of resale restrictions, higher provident fund loan caps and lower down payments

On 21 July, Chengdu issued the Notice on Measures to Promote the Stable and Healthy Development of the Real Estate Market. Key measures include: (1) removing resale restrictions in phases; (2) raising housing provident fund loan caps, cutting the minimum down payment ratio for second-home provident fund loans from 30% to 20%, and strengthening support for flexibly employed workers to join the provident fund system; (3) encouraging districts and counties to adopt measures such as direct down-payment subsidies; (4) continuing to explore school enrolment based on purchase contracts for undelivered new homes; (5) stepping up housing-voucher resettlement; (6) supporting the construction of high-quality housing.

Jinan: two stackable provident fund incentives for buyers of government-subsidised housing

On 21 July, Jinan introduced two stackable incentives for housing provident fund contributors purchasing allocation-type government-subsidised housing: (1) the minimum down payment ratio is lowered from 20% to 15%; (2) buyers may withdraw their provident fund account balances to pay the down payment while remaining eligible to apply for provident fund loans thereafter.

Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou: five megacities launch cross-provincial real estate registration

The cross-provincial real estate registration service pioneered in the Yangtze River Delta is expanding beyond the region. On 22 July, the planning and natural resources authorities of Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou formally signed a strategic cooperation agreement to jointly establish a cross-provincial registration mechanism, using the institutional innovation of "letting data travel more so residents travel less" to break down cross-regional barriers in government services.

The agreement took effect upon signing. The first batch covers 16 high-frequency registration services - including transfer registration of new commodity homes, first-time mortgage registration, and transfer registration of existing non-residential properties between enterprises - enabling residents of the five cities to complete registrations remotely across provincial lines.

This is the first cross-regional collaboration among real estate registration authorities of key cities in the Yangtze River Delta, Beijing-Tianjin-Hebei and the Greater Bay Area. All five cities are also national pilot cities for business environment innovation, so the cooperation marks a key step by pilot cities in advancing registration facilitation reform and using coordinated government services to keep improving the business environment.

Supreme People's Court issues judicial interpretation on enforcement objection lawsuits

On the protection of commodity-home purchasers' rights, the Interpretation sets out detailed and specific rules, clarifying the conditions for requesting title transfer registration and for handling purchase payments already made after contract termination, making such protection more operable in practice. It also clarifies the specific conditions under which expropriated parties may exclude compulsory enforcement. Home buyers who purchase for family living needs and in compliance with market order may resist enforcement claims arising from commercial interests in the property development chain; where property is expropriated for the public interest in accordance with statutory authority and procedures, the civil rights and interests of the expropriated parties receive special protection. The Interpretation took effect on 24 July 2025.

Market Watch

Shanghai: sixth-batch land auctions raise RMB 28.957 bn; Hengfu plot in Xuhui clears at over RMB 200,000/sqm

On 25 July, Shanghai concluded its sixth batch of land auctions for 2025. The batch comprised eight plots with total site area of c. 233,000 sqm and total planned GFA of c. 523,000 sqm, at a combined starting price of c. RMB 23.671 bn. Seven plots sold at a premium and one at reserve price, for total proceeds of c. RMB 28.957 bn.

The East Siwenli plot in Jing'an District went to Fuzhou Zhonghai Haiyi Real Estate Co., Ltd. after 34 rounds of bidding, at a total price of RMB 5.363 bn and a 10.1% premium.

The Xinzhuang community plot in Minhang District sold after 78 rounds to Anhui Expressway at the cut-off price of RMB 3.689 bn, a floor price of RMB 56,247/sqm and a 30% premium.

The Tangzhen plot in Pudong reached its cut-off price after 62 rounds. A consortium of China Merchants Shekou and CTG Investment ultimately won the plot at the cut-off price of RMB 2.7297 bn, plus a fit-out standard of no less than RMB 4,500/sqm for market-rate homes, 200 sqm of public service facilities (GFA-counted) and a 0.7% high-end talent housing allocation - a floor price of RMB 52,360/sqm and a 40% premium.

The North Bund plot in Hongkou District went to Greentown for RMB 6.4719 bn, at a floor price of RMB 126,577/sqm and a 46.33% premium.

The closely watched Hengfu plot in Xuhui - the area's first new residential land in a decade, with a site area of 4,705.49 sqm and planned GFA of 6,117.14 sqm (c. 5,200 sqm residential), set to become a benchmark for low-density heritage-district housing - carried a starting price of RMB 1.001 bn, or RMB 163,639/sqm of floor area. After 28 rounds of bidding, Shanghai Qixiang Wangyu Real Estate Co., Ltd. won the plot for RMB 1.225 bn, at a floor price of RMB 200,257/sqm and a 22.38% premium - a new record floor price for residential-use land in Shanghai and nationwide.

Hangzhou: land sales raise RMB 1.898 bn; Xifang and Binjiang Group each take one plot

On 22 July, Hangzhou sold two residential plots - Shiqiao in Gongshu District and Liangzhu East in Yuhang District - for combined proceeds of RMB 1.898 bn. Xifang won the Shiqiao plot for RMB 368 m, at a floor price of RMB 15,295/sqm and a 7.29% premium; Binjiang took the Liangzhu East plot for RMB 1.53 bn, at a floor price of RMB 17,472/sqm and a 29.65% premium.

Changsha: Greentown takes Plot 17 in the Guanshaling urban renewal area at a 3% premium

On 22 July, Plot 17 in Changsha's Guanshaling urban renewal area was successfully sold to Greentown at a 3% premium, for a total price of RMB 999 m, equivalent to a floor price of RMB 8,755/sqm. This is Greentown's second project in the Guanshaling renewal area.

Suzhou: Greentown pays RMB 4.667 bn for the SIP Shuanghu plot; RMB 65,242/sqm floor price sets a Jiangsu record

On 23 July, two plots in Suzhou - Shuanghu in Suzhou Industrial Park and Guoxiang in Wuzhong District - went to timed bidding, with combined site area of 107,500 sqm and total starting prices of RMB 4.964 bn. The SIP Shuanghu plot sold after 49 rounds of bidding to Greentown for RMB 4.667 bn, at a floor price of RMB 65,241.78/sqm and an 8.74% premium - a new record floor price for Jiangsu Province. The plot had drawn interest from developers including China Jinmao, Greentown, Xiangyu, China Overseas, C&D and China Merchants.

Chengdu: two residential plots sell for RMB 1.909 bn, top premium 29%

On 25 July, Chengdu sold two residential plots for a combined RMB 1.909 bn. The Chenghua District plot drew ten bidding developers and went to CTG Chenghua (Chengdu) Real Estate Co., Ltd. at a floor price of RMB 19,100/sqm - a total of RMB 1.579 bn and a 29% premium. The Wenjiang District plot, also contested by ten developers, went to Sichuan Yibin Shugao Real Estate Development Co., Ltd. at a floor price of RMB 5,700/sqm - a total of RMB 329.6 m and a 14% premium.

Project Watch

Liaoning: first rental housing ABS issued

The Huajin-Huafa Rental Housing No. 3 Tranche 1 asset-backed securities plan - with Zhuhai Huafa Industrial Co., Ltd. and Dalian Hualu Real Estate Development Co., Ltd. as originators, Huajin Securities as plan manager, and Dalian Huafa Hills as the underlying asset - was successfully issued on the Shanghai Stock Exchange. The product is Liaoning's first rental housing ABS (quasi-REIT), with an issuance size of RMB 322 m.

Guangzhou: first automobile-themed commercial-office complex completed

On 21 July, phase two of the mixed-use development at Dongping metro station in Baiyun District, Guangzhou passed completion inspection, marking the full delivery of Guangzhou's first automobile-themed commercial-office complex.

Built by the First Company of China Construction Fourth Engineering Division, the project is one of the key undertakings in Baiyun District's 14th Five-Year Plan, with total GFA of c. 60,000 sqm comprising an office tower and podium. It is positioned as an integrated smart-auto industry-chain platform combining automotive group headquarters, intelligent connectivity, automotive aftermarket businesses and rail transit functions.

The project leverages the mature automotive cluster already formed along Baiyun Avenue North, where automotive and related upstream and downstream above-scale industries exceed RMB 40 bn in total size, over 90% of which is wholesale and retail.

The complex has now formally entered operational preparation. Over the next five years, it is expected to add c. RMB 1.5 bn in output value, contribute RMB 100 m in tax revenue and create c. 2,000 jobs, injecting new momentum into Baiyun's automotive industry.

Singapore: GIC's heavyweight bet on data centre real estate signals recovery

Singapore is regaining its IPO magic. NTT DC REIT - the country's largest listing in eight years - rose as much as 3% on its trading debut, a positive signal that investor appetite for quality assets is warming up. The USD 773 m data centre REIT was heavily subscribed across all channels, with the retail tranche nearly 10x covered and the institutional tranche 4x. More strikingly, sovereign wealth fund GIC committed over USD 100 m as a cornerstone investor, becoming the second-largest shareholder - the fund's first participation in a domestic IPO in more than a decade. For the Singapore Exchange, which has long trailed more active markets such as Hong Kong and India, the shot in the arm comes at just the right time: SGX completed only four IPOs last year, raising as little as USD 34 m in total.

Corporate Watch

Vanke completes RMB 1.4 bn sale of Jinqiao Wanchuang Center in Shanghai

Vanke recently completed the sale of the Jinqiao Wanchuang Center in Shanghai. The buyer is an SOE - Kunshan Zhongliu Asset Management Co., Ltd., a wholly owned subsidiary of Zhouzhuang Investment Development Group. The total consideration was RMB 1.4 bn, or RMB 18,000/sqm.

The Jinqiao Wanchuang Center is one of Shanghai Vanke's earlier mature business park projects, with total GFA of 110,000 sqm - 80,000 sqm above ground and 30,000 sqm below. The project sits in a national economic and technological development zone in Shanghai, within the Shanghai Free Trade Zone expansion area, home to numerous multinational companies and a mature industrial base.

Xiangyu: RMB 600 m ABS status updated to "feedback received"

On 24 July, Shanghai Stock Exchange filings showed that the status of the XYZQ AM-Xiangyu Group industrial park holding-type real estate asset-backed plan had been updated to "feedback received". The instrument is issued by Xiamen Xiangyu Group Co., Ltd., with a proposed issuance of RMB 600 m in asset-backed securities (ABS), underwritten by Industrial Securities Asset Management.

Anju Group: Phase II rental housing quasi-REIT successfully issued

On 22 July 2025, the Shenzhen Anju Rental Housing Tranche 2 asset-backed plan (the "Shenzhen Anju quasi-REIT Phase II") - with Shenzhen Anju Group Co., Ltd. as issuer and Shenzhen Guangming Anju Co., Ltd. and Shenzhen Dapeng Anju Co., Ltd. as originators - was successfully established on the Shenzhen Stock Exchange. The tranche is the second issuance under Anju Group's RMB 5 bn rental housing quasi-REIT shelf programme, with an issuance size of RMB 3.876 bn and a senior tranche yield of 2.15%, reflecting strong investor recognition of the group's underlying asset quality and operational management capabilities.

The Phase II project is backed by four government-subsidised rental housing projects - Anju Minglu Court, Anju Lanting, Anju Dongwan Peninsula Garden and Anju Pengwan Mansion - comprising 8,942 subsidised rental units with combined GFA of c. 603,000 sqm and overall occupancy of 98%, all in stable operation.

China Overseas spends RMB 11.9 bn on two prime plots in Jing'an and Putuo

On the morning of 24 July 2025, Shanghai's sixth batch of centralised land supply for the year opened. In the contest for the most closely watched core plots, China Overseas emerged as the biggest winner, committing RMB 11.888 bn in a single day to secure two prime commercial-residential plots: East Siwenli in Jing'an District and Zhenru in Putuo District.

Notably, both plots include sizeable self-held community retail, likely extending China Overseas' premium "Huanyuhui" retail street product line paired with its luxury residential offerings. The West Siwenli plot in Jing'an hammered at RMB 5.363 bn, a floor price of RMB 90,390/sqm and a 10.1% premium; net of commercial costs, the effective floor price of the sellable residential portion climbs to RMB 114,000/sqm, implying future selling prices above RMB 160,000/sqm.

The Zhenru mixed-use plot in Putuo went to China Overseas for RMB 6.525 bn, at a blended floor price of RMB 58,823/sqm and a 14.17% premium. The sellable residential portion cleared at RMB 76,000/sqm, implying future selling prices above RMB 120,000/sqm.

Shanghai Construction Group: H1 attributable net profit of RMB 710 m, down 14.04% YoY

On 25 July, Shanghai Construction Group announced H1 2025 revenue of RMB 105.042 bn, down 28.04% YoY, and net profit attributable to shareholders of RMB 710 m, down 14.04% YoY. During the reporting period, new contract value reached RMB 97.958 bn for the construction segment, RMB 7.326 bn for design consulting, RMB 13.369 bn for building materials, RMB 6.959 bn for property development and RMB 1.27 bn for urban construction investment. The decline in attributable net profit mainly reflects shifting industry demand, lower revenue, and property and investment businesses falling short of expectations.

RMB 660 m: Tahoe Tower in Jing'an, Shanghai changes hands as Shunsheng Construction lays out a "dual-core" footprint

JD Auction records recently showed that Tahoe Tower - a Grade A office building in core Jing'an, Shanghai, sitting above a metro station, with near-whole-building operable title and completed in 2018 - was auctioned for RMB 659.7 m to a local Shanghai company. The building served as the Shanghai headquarters of Fujian-based developer Tahoe Group, with total GFA of c. 25,500 sqm.

The buyer is Shanghai Shunsheng Construction Group Co., Ltd., a private enterprise whose main businesses are building construction, municipal engineering, and water and electricity installation. Upon completion of the transaction, Shunsheng Construction plans to relocate its headquarters into the property and lease out and operate the remaining space.

27,000 sqm: Hello Inc. headquarters tower commences operation

Shanghai Fengfa Minggu recently announced that the headquarters tower of bike-sharing operator Hello Inc. has formally commenced operation.

Developed and built by Fengfa Urban Investment, the building was originally the Baohua International Plaza project; after several rounds of adjustment and upgrading, it obtained its construction permit in October 2023. Following two years of construction, the project was completed and put into use in July 2025, achieving an efficient "delivery upon completion" handover. The tower has total GFA of nearly 27,000 sqm across 17 floors, with typical floor plates of c. 1,344 sqm, accommodating more than 3,000 employees.

Wuxi Economic Development Zone industrial park holding-type real estate ABS approved

On 23 July, the Shanghai Stock Exchange website showed that the Guotai Junan AM-Wuxi Economic Development Zone National Sensing Information Industrial Park holding-type real estate asset-backed plan had been approved. The originator is Wuxi Taihu City Sensing Information Center Development Co., Ltd., the plan manager is Shanghai Guotai Junan Securities Asset Management Co., Ltd., and the proposed issuance is RMB 686 m.

Wuxi Taihu City Sensing Information Center Development Co., Ltd., established in December 2009, is a Wuxi municipal SOE. The National Sensing Information Center, which broke ground around the time of the company's founding, has a planned total land area of 3.6 sq km, with 1.5 m sqm of industrial carriers planned in phase one and 5 m sqm in phase two. The center has been built as a specialised park centred on sensor-network information technology R&D and practical application, supported by related industry clusters, and positioned as a national pioneer, core and demonstration zone for sensor-network technology R&D and application.

Mapletree sells US warehouse portfolio for USD 241 m

Singapore real estate investor Mapletree Investments has sold a warehouse portfolio totalling 2.4 m sq ft in the US Sunbelt to Swedish private equity firm EQT Real Estate for USD 241.2 m. The deal is Mapletree's second US warehouse disposal within a month, following the USD 328 m sale of another 1.8 m sq ft industrial portfolio in June 2025. The portfolio comprises ten large warehouse facilities in high-growth areas including Georgia, Florida and Texas.

KKR's first onshore RMB fund lands in Shanghai

KKR's onshore management entity, Kaide Shipu (Shanghai) Private Investment Fund Partnership (Limited Partnership), recently completed registration with the Asset Management Association of China as a private equity fund. This marks the formal launch of KKR's first onshore RMB fund, with LPs including Ping An Capital, Tsao Pao Chee and Schroders.