GRA Market Weekly (2025-08-23)

Policy Watch

PBOC: continue to consolidate stability in the property market and improve the foundational institutional framework for real estate finance

On 15 August, the People's Bank of China released its Q2 2025 China Monetary Policy Report, which included support for the steady and healthy development of real estate. The report called for making good use of pledged supplementary lending to support policy and development financial institutions in providing credit for the construction of affordable housing, urban village redevelopment and "dual-use for normal times and emergencies" public infrastructure. Going forward, the PBOC will work to bring financial policy measures such as the affordable housing re-lending facility into effect, continue to consolidate stability in the property market, improve the foundational institutional framework for real estate finance, and help build a new development model for real estate.

Ninth plenary meeting of the State Council: take forceful measures to consolidate the property market's return to stability

On 18 August, Premier Li Qiang chaired the ninth plenary meeting of the State Council. The meeting stressed the need to align thinking and action with the Party Central Committee's scientific assessment of the situation and its policy decisions, to consolidate and extend the momentum of economic recovery, and to make every effort to achieve the year's economic and social development targets. It emphasised further improving the effectiveness of macro policy implementation, evaluating policy outcomes, enhancing targeting and effectiveness, and responding promptly to market concerns to stabilise expectations. On the domestic circulation front, it called for continuing to unlock consumption potential, removing restrictions on consumption, and cultivating growth drivers such as services consumption and new forms of consumption; stepping up effective investment, leveraging the leading role of major projects, promoting private investment, and advancing the building of a unified national market. On the property market, it called for taking forceful measures to consolidate its return to stability, and for advancing urban village and dilapidated housing redevelopment in conjunction with urban renewal to release upgrade-driven demand. At the same time, it called for deepening reform and opening up, advancing the integration of technological and industrial innovation, expanding high-standard opening up, and innovatively developing digital trade and services trade. In addition, it called for greater efforts to stabilise employment and safeguard living standards, broaden channels for employment and income growth, improve public services, and strengthen disaster prevention, mitigation and relief as well as workplace safety oversight, so as to ensure overall social stability.

Chengdu: provident fund loan policy for affordable housing adjusted

On 21 August, the Chengdu Housing Provident Fund Management Committee issued the Notice on Policies for Housing Provident Fund Support for Contributors Purchasing and Renting Affordable Housing. It provides that the minimum down payment ratio for provident fund loans used to buy affordable housing is 15%, and that maximum loan quotas for single- and dual-contributor households are each raised by 50% - from the current RMB 600,000 for a single contributor and RMB 1 m for two contributors to RMB 900,000 and RMB 1.5 m respectively - so that a provident fund loan can essentially cover a contributor's remaining purchase funding needs beyond the down payment, easing the burden of buying a home.

Beijing: temporary support for contributors affected by the 2025 flood season

On 18 August, the Beijing Housing Provident Fund Centre introduced a dedicated flood-relief support policy: affected employees who complete rental registration may withdraw provident fund for rent beyond the standard limits (capped at actual monthly rent); those facing difficulties in repairing their homes may withdraw their account balance (subject to verification by the township government). The policy is valid until 30 November 2025, and applications require verification by emergency management authorities.

Guangzhou: detailed rules published for converting commercial mortgages into provident fund loans

On 20 August, the Guangzhou Housing Provident Fund Management Centre issued the Implementation Measures for Converting Commercial Individual Housing Loans into Individual Housing Provident Fund Loans in Guangzhou (Interim). Key provisions stipulate that the conversion loan amount is assessed under Guangzhou's provident fund loan policy in force at the time of application, and may not exceed the difference between the outstanding balance of the original commercial loan at the time of application and the principal due over the following three months, nor exceed 70% of the total purchase price. The total purchase price is taken as the lower of the original purchase price of the property and its re-inspected (re-appraised) value.

Shanghai Housing Commission: implementing the meeting's guidance in detail and studying the 15th Five-Year Plan in depth

The Shanghai Municipal Commission of Housing and Urban-Rural Development recently held a symposium for broad discussion of the 15th Five-Year Plan, inviting academicians of the Chinese Academy of Sciences and the Chinese Academy of Engineering, National Masters of Engineering Survey and Design, senior industry experts, deputies to the People's Congress, CPPCC members, corporate representatives and citizen representatives to discuss the "1+3" framework plan and key special plans in the housing and urban-rural development field. The meeting required each planning team to implement the guidance of the Central Urban Work Conference, promptly incorporate the experts' views and suggestions, conduct consultations in parallel, further revise and refine the planning outputs, and advance the planning work on schedule and to a high standard.

Market Watch

Hangzhou: two residential plots raise RMB 671 m; one residential-use plot raises RMB 525 m

On 19 August, Hangzhou sold two residential plots, located in the Xiasha unit of Qiantang District and the Changhua unit of Lin'an District, with total land area of 79,257 sqm, total planned GFA of 95,971.6 sqm and a combined starting price of RMB 611 m. The Xiasha unit plot was taken by Lanbin Real Estate at a 13.88% premium, while the Changhua unit plot sold at reserve price, with the two residential plots raising RMB 671 m in total.

On 21 August, Hangzhou sold one residential-use plot in the South Station unit, raising RMB 525 m. The plot was won by Hangzhou Hongchen Urban Construction Development Co., Ltd. and Hangzhou Xiaoshan Huancheng Construction Development Co., Ltd. (Far East Horizon & Xiaoshan Huancheng Construction) at the reserve price of RMB 525 m, at an accommodation value of RMB 10,000/sqm and a 0% premium.

Project Watch

Minhang, Shanghai: Dongyuan Group's Dongyuan Mile International Apartments formally welcomes residents

On 16 August, Dongyuan Mile International Apartments, the premium product line of Dongyuan Group's long-term serviced apartment business, formally opened. The property is located at Building 1, Gubei Yue Mansion, Lane 2499 Lianhua Road, Shanghai, offering 99 studio, one-bedroom and two-bedroom units of 51-128 sqm.

Suzhou Industrial Park: China's first collective-economy REITs issued

The Huajin - Yuanlian - Loufeng Sub-district Lianchuang Industrial Park Asset-Backed Special Plan recently completed pricing, sized at RMB 450 m with a 3+1 year term. The originator, property operator, obligor for any shortfall in operating income and holder of the right of first refusal is the Loufeng Sub-district Community Joint-Stock Cooperative Union of Suzhou Industrial Park; the property holder and project company is Suzhou Industrial Park Fengcai Operation Management Co., Ltd.; and the credit enhancer is Suzhou Industrial Park State-Owned Capital Investment and Operation Holding Co., Ltd.

The project is the first collective-economy REITs to be approved nationwide. The underlying property is Lianchuang Industrial Park (at 45 Dongfu Road, Suzhou Industrial Park), comprising one office building, 11 factory buildings and 315 underground parking spaces, leased mainly as production and R&D office space. The park was rebuilt to high standards from formerly aging factory buildings by the community joint-stock cooperative union formed by 12 relocation communities of Loufeng Sub-district, integrating landscaping, greenery and shared spaces.

Corporate Watch

Vanke: plans to sell 3,556 sqm of commercial assets at Cuihu International for RMB 120 m

According to reports on 21 August, Beijing Vanke issued an Announcement on the External Sale of Part of Our Holdings in the Beijing Cuihu International Project, planning to sell five office floors and one basement storage floor of Building 8 at Cuihu International, with a combined reserve price of c. RMB 120 m. Cuihu International is located in Beijing's Zhongguancun, with total GFA of c. 150,000 sqm; the assets for sale comprise office space on floors 1-5 totalling 3,418 sqm and storage space on basement level 1 totalling 138 sqm.

Poly Developments: replenishes land bank in Sanya CBD for RMB 1.134 bn at an accommodation value of RMB 6,980/sqm

On 19 August, the Sanya CBD successfully sold one residential plot, with Poly Developments securing it for a total of RMB 1.134 bn, at an accommodation value of RMB 6,980/sqm and a premium of 0.01%. The plot is located in the southern area of the Yuechuan unit in the Sanya CBD, with a construction site of 70,434.6 sqm, planned GFA of 162,424.07 sqm and comprehensive land use (including residential). Plot YC1-04-02A/B covers 48,371.37 sqm, zoned residential mixed with cultural-activity use, with a plot ratio of 2.4 and a height limit of 99 m; plot YC1-04-02C covers 22,063.23 sqm, zoned residential, with a plot ratio of 2.10 and a height limit of 80 m. Surrounding amenities are well established, with key municipal schools, Class-A tertiary hospitals and shopping centres within 3 km, alongside abundant landscape resources.

China Merchants Shekou: teams up with Hangzhou Tourism Investment to establish Zhaoding Properties with RMB 1.4 bn

On 19 August, Shanghai Zhaoding Properties Co., Ltd. was formally established in Shanghai with registered capital of RMB 1.4 bn. Its business scope covers real estate development and operation, among other activities. Shareholding disclosures show the company is jointly held by Hangzhou Tourism Investment Real Estate Development Co., Ltd. and Shanghai Hongrun Properties Co., Ltd., a wholly owned subsidiary of China Merchants Shekou. Hangzhou Tourism Investment is a wholly owned subsidiary of Hangzhou Exhibition Group, focused on industrial heritage preservation and the integration of culture and tourism; its flagship project, the Wulin Star Expo Centre, is a major cultural and tourism project in Hangzhou. The joint venture aims to capture urban development opportunities in Shanghai and surrounding areas, reducing risk and optimising resource allocation through cooperation against a backdrop of property policy adjustment and industry transition.

UK Treasury plans a new tax on property transactions above GBP 500,000

The UK Treasury plans to levy a new "proportional" property tax on sales of owner-occupied homes worth more than GBP 500,000, replacing the current stamp duty. The tax would apply only to sales of high-value owner-occupied homes and is expected to affect c. 20% of transactions, whereas the current stamp duty covers 60% of transactions and is borne by buyers.

Swire Properties: HKD 6.3 bn recovered from asset disposals

Swire Pacific recently disclosed at an investor conference call that it recovered c. HKD 6.3 bn in the first seven months of 2025 through the sale of Miami land parcels and a retail mall. The group has committed c. 67% of its HKD 100 bn total investment plan, with investment focused on core commercial projects in mainland China, among others. On construction, seven large projects are under way in mainland China, with attributable GFA of c. 13.3 m sq ft expected to complete between 2025 and 2028. On sales and leasing, residential sales at Yuandi at Taikoo Yuan in Lujiazui, Shanghai are progressing well, and retail sales in mainland China remain resilient.

KKR: leads the bidding for Nissan's Yokohama global headquarters with an offer of c. RMB 4.4 bn

Bloomberg, Reuters and other media recently cited "people close to the transaction" as saying that PE giant KKR, through its Japanese subsidiary KJR Management, has become the "lead bidder" for Nissan's Yokohama global headquarters building with a top offer of c. JPY 90 bn (USD 610 m at that day's exchange rate, or close to RMB 4.4 bn), and is expected to sign a definitive agreement within the next four to six weeks.

Blackstone sells three Italian shopping villages for EUR 400 m, reshaping Europe's outlet landscape

Blackstone this week agreed to sell three Italian outlet shopping villages to French listed shopping centre operator Frey and its capital partner Cale Street for EUR 410 m. The deal not only marks Blackstone's continued optimisation of its European retail portfolio but also propels Frey into a significant force in the European outlet market, shifting the regional competitive landscape.

The assets sold comprise Franciacorta Village in Lombardy, Valdichiana Village in Tuscany and Palmanova Village near Trieste. Together, the three outlet villages attracted c. 11 m visitors in 2024, with total operating profit of EUR 32 m.