GRA Market Weekly (2025-08-16)

Policy Watch

NBS: new-home prices fell month-on-month across all city tiers in July, with year-on-year declines narrowing overall

Data released by the National Bureau of Statistics showed that in July 2025, across the 70 large and medium-sized cities, new commodity residential sales prices fell month-on-month in all city tiers, while year-on-year declines narrowed overall.

In July, new-home prices in tier-1 cities fell 0.2% month-on-month, with the decline narrowing by 0.1 percentage point from the previous month. Beijing was flat, Shanghai rose 0.3%, while Guangzhou and Shenzhen fell 0.3% and 0.6% respectively. New-home prices in tier-2 cities fell 0.4% month-on-month, with the decline widening by 0.2 percentage point. New-home prices in tier-3 cities fell 0.3% month-on-month, unchanged from the previous month.

In July, new-home prices in tier-1 cities fell 1.1% year-on-year, with the decline narrowing by 0.3 percentage point from the previous month. Shanghai rose 6.1%, while Beijing, Guangzhou and Shenzhen fell 3.6%, 4.6% and 2.2% respectively. New-home prices in tier-2 and tier-3 cities fell 2.8% and 4.2% year-on-year, with declines narrowing by 0.2 and 0.4 percentage point respectively. In July, secondary residential prices in tier-1 cities fell 3.4% year-on-year, with the decline widening by 0.4 percentage point from the previous month. Beijing, Shanghai, Guangzhou and Shenzhen fell 2.9%, 2.2%, 6.0% and 2.5% respectively. Secondary residential prices in tier-2 and tier-3 cities fell 5.6% and 6.4% year-on-year, with declines narrowing by 0.2 and 0.3 percentage point respectively.

Beijing: no cap on the number of homes purchased outside the Fifth Ring Road for eligible buyers

On 8 August, Beijing issued the Notice on Further Optimising and Adjusting the City's Real Estate Policies. Key contents include (1) no cap on the number of homes purchased outside the Fifth Ring Road for buyers meeting purchase-eligibility requirements; (2) purchase restrictions no longer treat single buyers separately, with adult singles assessed on the same basis as families; (3) buyers who own no home and have fully repaid one previous provident fund loan qualify for first-home provident fund loan terms; (4) the maximum second-home provident fund loan is raised from RMB 600,000 to RMB 1 m, with the minimum down payment ratio cut to 30%; (5) provident fund loan quotas shift from the current "RMB 100,000 per year of contributions" to "RMB 150,000 per year of contributions"; (6) provident fund withdrawals are supported for down payments on new-home purchases.

Suzhou: provident fund down payment ratio cut to 15%

On 12 August, the Suzhou Housing Provident Fund Centre issued a circular providing that (1) criteria for counting the number of provident fund loans used are refined - where a home bought with an earlier provident fund loan has been sold, the corresponding loan count may be deducted for applicants seeking a provident fund loan for a first or second owner-occupied home; (2) the down payment ratio for first- and second-home provident fund loans is cut to 15%; (3) the scope of provident fund withdrawals for serious illness is expanded; (4) withdrawals for property management fees are supported.

Wenzhou: allocation-type affordable housing policy takes effect from September, targeting households with housing difficulties and imported talent

On 14 August, the Wenzhou Municipal People's Government issued the Administrative Measures for Allocation-Type Affordable Housing in Wenzhou. The city will implement its allocation-type affordable housing policy in September 2025, targeting salaried groups with housing difficulties and imported talent. Eligibility conditions include urban household registration (talent exempted), 12 consecutive months of social insurance contributions, and household annual income below 1.3 times local per capita disposable income (talent exempted).

Fuzhou: 16 new measures issued to support real estate project development and construction

The Fuzhou Municipal Bureau of Natural Resources and Planning, the Fuzhou Municipal Housing and Urban-Rural Development Bureau and the Fuzhou Real Estate Registration and Transaction Centre recently jointly issued the Several Measures to Support the Development and Construction of Real Estate Projects. The measures set out 16 specific policies across five areas: streamlining planning and construction approvals, optimising plot-ratio calculation rules, improving project planning administration, improving project acceptance mechanisms, and supporting the recovery of pre-sale proceeds.

Hainan: further optimisation and adjustment of regulatory policies

Hainan's Department of Housing and Urban-Rural Development and other authorities issued a notice on further optimising and adjusting relevant regulatory policies, proposing to abolish the distinction between ordinary and non-ordinary residential standards, and to maintain the full fit-out system for commodity housing under an overall principle of piloting first and advancing steadily, with Haikou to explore the approach ahead of other cities.

Market Watch

Nanjing: land auction raises RMB 723 m, with Nanjing Metro and PowerChina Real Estate each taking one plot

On 15 August, Nanjing successfully sold two residential-use plots, located in Gulou and Qixia districts, with total land area of 49,293.21 sqm, total planned GFA of 68,669.75 sqm and a combined starting price of RMB 723 m. Nanjing Metro won the Gulou plot for RMB 233 m, while PowerChina Real Estate replenished its land bank in Qixia for RMB 490 m, with the two plots raising RMB 723 m in total.

Shenzhen: 187 bidding rounds take a Bao'an plot to RMB 8.64 bn

On 15 August, Shenzhen held its third land auction of the month, with the residential plot in Xin'an Sub-district, Bao'an District finally won jointly by China Merchants Shekou and China Resources Land. The plot sits on the southwest side of the junction of Jia'an South Road and Jinke Road in Xin'an Sub-district, Bao'an District, with land area of 42,521.94 sqm, GFA of 145,000 sqm, a plot ratio of 3.41, a starting price of RMB 6.409 bn and a starting accommodation value of RMB 44,200/sqm. Three bidders submitted offers before the auction, and after 187 rounds of offline bidding, Shenzhen Zhaoshun Properties Co., Ltd. and Shenzhen Runkun Real Estate Co., Ltd. (China Merchants Shekou & China Resources Land) won it for a total of RMB 8.64 bn, at an accommodation value of RMB 59,586/sqm and a premium of 34.81%.

Project Watch

Ascott: China's first senior living apartment scheme enters trial operation

On 4 August, the Hangzhou Bay Domitys senior living apartments in Ningbo recently began trial operation, with a first batch of 272 apartments and the common areas opened. The project's official WeChat account gave 18 August as the formal opening date. The project occupies a site of 50.45 mu (c. 33,600 sqm) with total GFA of 69,400 sqm, comprises nine standalone buildings, and is planned for c. 500 senior living and care apartments, with a wide unit mix from studios to two-bedroom units and from active-living apartments to care rooms. It is operated in partnership between Ascott, part of Singapore's CapitaLand, and French premium senior living group Domitys, with the owner being Ningbo state-owned platform Ningbo Qianwan Holding Group Co., Ltd.

Jinan Rail Transit resources arm: Shandong's first metro-podium subsidised rental housing completed

On 8 August, the Wangfu depot rental housing project developed by the resources operation and management arm of Jinan Rail Transit Group completed its construction filing and entered operational preparation. The project is Shandong's first steel-structure prefabricated government-subsidised rental housing scheme built above an operating metro depot, and will provide 1,647 standardised, fully fitted units. Located in the Wangfu area of Huaiyin District, Jinan, Shandong, it has total GFA of c. 123,300 sqm, comprising nine residential buildings, one block of supporting retail, and three podium transport cores with associated car parks. Unit sizes on offer include 35, 60 and 90 sqm layouts.

Wuyue Plaza: holding-type real estate ABS approved

According to the Shanghai Stock Exchange, the Sinolink Asset Management - Wuyue Plaza Holding-Type Real Estate Asset-Backed Special Plan has been formally approved. The issue is sized at RMB 1.064 bn, with Shanghai Ruishuochuang Enterprise Management Co., Ltd. as originator and Sinolink Securities Asset Management Co., Ltd. as plan manager.

As at the end of 2024, Seazen Holdings had 200 Wuyue Plazas across 136 cities nationwide, of which 173 were open and in operation including those under management mandates, with opened area of 16.0107 m sqm and occupancy improving to 97.97%. Total commercial operating revenue reached RMB 12.808 bn in 2024, up 13.10% year-on-year. By rental contribution, Jiangsu and Zhejiang delivered rental income of RMB 3.336 bn and RMB 1.507 bn, accounting for 26.04% and 11.77% of rental income respectively, making them the principal rent-contributing regions.

In 2024, Wuyue Plaza footfall totalled 1.766 bn visits, up 19% year-on-year; total sales reached RMB 90.5 bn, up 19% year-on-year, or RMB 96.6 bn including vehicle sales. As at the end of 2024, membership stood at 43.7 m, up 32% from end-2023.

Corporate Watch

Chengtou Kuanting: premium serviced apartment brand "Kuanlan" formally unveiled

Shanghai Chengtou Holding recently held a themed conference on the Shanghai Chengtou subsidised rental housing REIT together with a launch event for the Chengtou Kuanting brand strategy upgrade. At the event, Chengtou Kuanting's premium serviced apartment brand "Kuanlan" was formally unveiled, offering a new rental living solution for high-net-worth individuals seeking quality living through an integrated setting combining residence, leisure and social interaction.

China Resources Land: doubling down on Shanghai with a national record land price of over RMB 24 bn

China Resources Land recently announced its latest investment in Shanghai: at a total consideration of RMB 24.47 bn, it acquired, together with Shanghai Nanfang Group, the combined plots at Houtan in Pudong New Area and Yuqingli in Huangpu District, Shanghai. This is also a new national record for total land price so far in 2025. According to the announcement, China Resources Land's wholly owned subsidiary Shanghai Hongzhe formed a consortium with Shanghai Nanfang Group and acquired the equity and debt of the companies holding the combined plots through the Shanghai United Assets and Equity Exchange, with Shanghai Hongzhe contributing 90%. This means China Resources Land's outlay will exceed RMB 22 bn.

A China Resources Land representative said that securing the Houtan and Yuqingli combined plots marks an upgrade of the company's strategic footprint in Shanghai. The two combined plots will create resource linkage and functional complementarity, together forming a "super luxury asset package" built by China Resources Land in Shanghai's core districts.

Swire Properties presses ahead with its Miami asset disposal plan

On 12 August 2025, Swire Properties announced the sale of a development site within the Brickell City Centre mixed-use development in Miami to Dubai-based hotel operator Kerzner International for USD 45 m. This is Swire Properties' third asset exit in Miami since the start of 2025, marking an adjustment of its investment strategy in the region.

CapitaLand REIT makes first GBP 200 m investment in UK logistics development land

Singapore-listed CapitaLand Ascendas REIT (CLAR) announced on Monday that it will acquire logistics development land in the UK Midlands for GBP 203.5 m (SGD 350.1 m), the trust's first logistics development investment in the UK. On completion, CLAR will build a combined c. 135,600 sqm (1.46 m sq ft) of warehouse space at Manton Wood and Towcester, with the seller being the real estate investment arm of international logistics giant DHL.