GRA Market Weekly (2025-08-09)

Policy Watch

PBOC: improve macro-prudential management of real estate finance

On 1 August, the People's Bank of China held its H2 2025 work conference, combined with a meeting on advancing central inspection rectification on a regular, long-term basis. The meeting called for improving macro-prudential management of real estate finance and supporting the accelerated construction of a new development model for real estate. It reaffirmed the principle of "purchasing according to demand" in acquiring existing commodity housing for use as affordable housing, to stabilise the property market.

China Real Estate Association: supporting small and mid-sized developers

On 5 August, the China Real Estate Association issued the Notice on Strengthening Ties Between the Association and Enterprises and Promoting the Healthy Development of Small and Mid-sized Developers. Provincial, autonomous-region and municipal real estate associations may each recommend 10-15 local small and mid-sized developers, which will receive services including channels to voice policy concerns, access to financial services, support for sales and destocking, and supply-chain improvement.

Kunming: restrictions lifted on provident fund withdrawals for out-of-town home purchases

On 1 August, Kunming issued the Notice on Adjusting the Policy for Housing Provident Fund Withdrawals for Home Purchases Outside Kunming's Administrative Area. For withdrawals tied to homes purchased outside Kunming, the requirement that the property be located in the applicant's (or spouse's) place of household registration or place of work is abolished, and applicants no longer need to provide household registration booklets or proof of employer location.

Xi'an: tighter administration of individual provident fund loans

Xi'an recently issued the Notice on Further Clarifying Matters Relating to Individual Housing Provident Fund Loans. The adjustments cover multiple areas, including procedures for early loan settlement, circumstances not counted towards loan quotas, income verification for flexibly employed workers, validity requirements for credit reports, recognition of loan counts for military personnel's provident fund loans, treatment of guarantees provided for others' provident fund loans, simplified application materials and income recognition for employees enrolled through labour-service companies, and handling of non-overdue loan markers.

Shanghai: full launch of urban village comprehensive redevelopment projects in 2026

On 7 August, according to the Shanghai Housing and Urban-Rural Development Commission, the 23rd session of the Standing Committee of the 16th Shanghai Municipal People's Congress reviewed the Report on the Progress of Urban Renewal Work, confirming that urban village comprehensive redevelopment projects will be fully launched in 2026 and renovation of small-beam thin-slab housing fully completed in 2027, alongside continued renovation of aging residential compounds, accelerated revitalisation of commercial and business districts, improved efficiency of industrial land, functional integration and quality upgrades along the "One River, One Creek, One Belt" corridors, and strengthened protection of historical and cultural heritage.

Wenzhou: provident fund policies optimised to support housing market stabilisation

On 6 August, according to the Wenzhou municipal government, the city optimised several housing provident fund policies. Among them, the minimum down payment for provident fund loans on a family's second home is cut from 30% to 20%, while for purchases of allocation-type affordable housing the down payment ratio is no less than 15%.

Market Watch

Shanghai: China Construction Yipin takes Dinghai plot in Yangpu for RMB 2.257 bn, at RMB 76,000/sqm

On 1 August, plot I9-01 in the Dinghai community, Yangpu District, Shanghai was posted for sale by agreement, with China Construction Yipin as the intended land user. The heritage-district redevelopment plot has a construction site of 21,200 sqm, a plot ratio of 1.4 and above-ground plot-ratio GFA of c. 29,700 sqm, for a total consideration of RMB 2.257 bn - an accommodation value of RMB 76,000/sqm. Planning requirements call for retaining 7,000 sqm of historical buildings and allocating 5% to public rental housing. Villa-type products are strictly prohibited, residential units must be 100% fully fitted out, and the retail component must be held and operated by the developer.

Shenzhen: Greentown wins a Bao'an residential plot for RMB 1.215 bn at an 11.47% premium

On 4 August, Shenzhen's Bao'an District sold one residential-use plot, which Greentown won for a total of RMB 1.215 bn, at RMB 20,364/sqm and an 11.47% premium.

Suzhou: Xinzhen Construction takes a Taihu Science City plot for RMB 445.2 m

On 7 August, a residential plot in Taihu Science City, Suzhou New District sold at its reserve price of RMB 445.2 m to Xinzhen Construction Development Co., Ltd. The plot has planned GFA of 35,615.68 sqm, a plot ratio of 1.05 and a height limit of 26 metres, with an accommodation value of RMB 12,500/sqm.

Shenzhen: Shum Yip consortium secures a Longhua residential plot for RMB 1.789 bn

On 8 August, Shum Yip Group teamed up with Longhua Construction Group to secure a residential plot in Longhua District for RMB 1.789 bn, at RMB 35,030/sqm and a 15.12% premium. The plot sits at the junction of Dalang and Minzhi sub-districts in Longhua District, with a construction site of 16,475.54 sqm, planned GFA of 51,070 sqm, a plot ratio of 3.1 and residential zoning; the starting price was RMB 1.554 bn, or RMB 30,429/sqm. After 49 rounds of bidding, Shenzhen Shum Yip Xingpeng Investment Co., Ltd. and Shenzhen Longqing Industrial Park Investment Development Co., Ltd. (Shum Yip Group & Longhua Construction Group) won it for RMB 1.789 bn.

Project Watch

Shanghai Electric: first subsidised rental project Jingyunli launches in September with 666 talent apartments

On 31 July, Shanghai Electric Group's first government-subsidised rental housing project, Jingyunli, was unveiled in Jing'an District, Shanghai, with a concentrated launch expected in September to provide quality rental homes for group employees and talent in the surrounding area. The project sits at 666 Luochuan Middle Road in the core of the Daning area, with convenient transport - 3 km to Shanghai Railway Station and 13 km to Hongqiao International Airport - and rich amenities nearby, including Zhabei Park, the Jiuguang Center and tertiary hospitals. Jingyunli offers 666 apartments of 39-92 sqm, from studios to three-bedroom units, fitted with balconies and smart appliances such as refrigerators and air conditioners. A 400 sqm shared space houses a coffee area and gym, with 286 parking spaces. As a Jing'an District demonstration project combining subsidised rental housing with talent apartments, tenants qualifying under the Jing'an Talent Housing Programme enjoy rent subsidies, with exclusive preferential terms for Shanghai Electric employees.

First data centre REITs list successfully

On 8 August, the Southern Runze Technology Data Center REIT and the Southern GDS Data Center REIT listed simultaneously on the Shanghai and Shenzhen exchanges. As of press time, both products had hit the 30% upward daily limit.

According to the prospectuses, the Southern Runze Technology Data Center REIT's underlying asset is the A-18 data centre project at the International Information Cloud Hub (ICFZ) under Runze Intelligent Computing Technology Group; the Southern GDS Data Center REIT's underlying asset is the Guojin Data Center, located at the Yangtze River Delta national hub node (Huaqiao Town, Kunshan).

On yield, the Southern Runze Technology Data Center REIT projects cash distribution rates of 7.71% for 2025 and 6.42% for 2026; the Southern GDS Data Center REIT projects 6.05% and 6.2% for 2025 and 2026 respectively.

Sino-Ocean Commercial: signs the Beijing Optical Instrument Factory urban renewal project

On 4 August, Sino-Ocean Group announced that Sino-Ocean Commercial has formally signed the Beijing Optical Instrument Factory urban renewal project. Located on Xinhua West Street in Tongzhou District, Beijing, with a total site of c. 70,400 sqm, it is one of the key renewal projects in Beijing's sub-centre. Originally an aging industrial complex, the project has been under conversion since December 2024 with "green upgrading and technology empowerment" as its core concept, planning to retain part of the historical buildings while bringing in green-technology enterprises to create a green technology innovation service park integrating industry, exhibitions, incubation, housing and commercial services.

Corporate Watch

Blackstone: acquires Warburg Pincus-backed Korean logistics warehouses

Private equity giant Blackstone has reportedly completed the acquisition of two Korean warehouse projects from Warburg Pincus-backed Qube - the Gimpo Gochon and Namyangju Hwado logistics centres (total area c. 120,774 sqm). Qube invests mainly in quality logistics warehouses in and around Seoul, targeting an asset portfolio of over 300,000 sqm, betting on growth in e-commerce and third-party logistics demand. Positioned as an institutional-grade industrial real estate platform, Qube draws on Warburg Pincus's international capital and MQ's local development expertise to build a leading Korean logistics portfolio. Blackstone paid an average of c. KRW 2.72 m per sqm (USD 1,964), putting the total deal at c. KRW 329 bn, or roughly USD 238 m.

CapitaLand Ascott Trust: to sell a Tokyo apartment hotel

On 4 August, CapitaLand Ascott Trust announced the sale of Citadines Central Shinjuku Tokyo for JPY 25 bn (c. SGD 223 m) to ML Estate, a wholly owned subsidiary of Japan's Mizuho Leasing, with completion expected in Q4 2025. The sale price represents a premium of c. 100% over book value, and Ascott expects a net after-tax gain of JPY 5.7 bn.

Goldman Sachs: third UK student housing acquisition this year

Goldman Sachs Alternatives' real estate arm recently acquired another student accommodation asset in Southampton for GBP 86 m. The acquisition again partners with UK student housing operator Generation Partners - the third student housing purchase since the two established their partnership last year. The asset, Portswood House, was sold by a company under leading UK student housing operator Vita, comprises 435 beds, and will be managed by Now Student.

Vanke: Port Apartment partners with Minmetals Real Estate

On 7 August, Vanke's Port Apartment (Boyu) reached a cooperation agreement with Minmetals Real Estate (Shenyang) Co., Ltd. under China Minmetals to revitalise an existing asset at 18 Wenhua East Road, Shenhe District, Shenyang, comprising 216 apartments. The project sits in the core of the Wulihe CBD, adjacent to several retail districts, above the Wenfu Road station on Metro Line 3, expected to open by the end of 2025. Port Apartment will provide technical support and asset management services.

Seazen Holdings: successfully issues RMB 1 bn of medium-term notes

On 1 August, Seazen Holdings announced the successful issuance of its first tranche of 2025 medium-term notes: RMB 1 bn in size, 2.28x subscribed, with a 5-year tenor and a 2.68% coupon. China Chengxin International assigned AAA ratings to both the issuer and the notes.

Fantasia: updated offshore restructuring terms agreed with holders of over 34.9% of notes

On 4 August, Fantasia updated its offshore debt restructuring terms, reaching agreement with creditors holding 34.9% of its notes to restructure USD 4.02 bn of debt. The new agreement permits an additional USD 900 m of debt instruments to support financial stabilisation.

Shanghai: 42,000 subsidised rental homes built or sourced in H1

On 30 July, the 23rd session of the Standing Committee of the 16th Shanghai Municipal People's Congress heard and reviewed the municipal government's report on the implementation of the 2025 H1 economic and social development plan. The report showed continued improvement in the housing security system: 42,000 subsidised rental housing units (rooms) were built or sourced citywide in the first half, alongside 19,000 beds supplied for the "New-Era City Builders and Managers Home" programme. Shanghai also ran a dedicated housing support campaign for fresh university graduates working in the city.

Insurers plan RMB 16 bn acquisition of ten Livat malls in China

Market sources report that Ingka is planning a packaged sale of its ten Livat shopping centres in China. The first batch comprises the malls in Wuxi, Beijing and Wuhan, involving RMB 16 bn. The buyer is a fund led by Taikang Life with total size of RMB 8 bn: Taikang Life subscribes RMB 3 bn, with other insurance investors - including BOC-Samsung Life, Manulife-Sinochem, AIA and MetLife - subscribing a combined RMB 3 bn, while Ingka takes the junior tranche with c. RMB 2 bn. The remaining RMB 8 bn of the consideration is expected to be funded through bank financing. Post-sale, Ingka retains operating rights, and it has committed that insurance institutions' returns over the investment period will approach 7%.