GRA Market Weekly (2025-08-30)

Policy Watch

CPC Central Committee and State Council: accelerate the building of a new development model for real estate

On 28 August, the Opinions of the CPC Central Committee and the State Council on Promoting High-Quality Urban Development were released. The Opinions stress that cities are an important vehicle for modernisation and an important space for people's happy lives. China's urbanisation is shifting from a period of rapid growth to one of stable development, and urban development is shifting from a stage of large-scale incremental expansion to one focused primarily on improving the quality and efficiency of existing stock.

The Opinions propose that by 2030, important progress will have been made in building modern people-centred cities, with policies and institutions suited to high-quality urban development continuously improved, faster replacement of old growth drivers with new ones, markedly better living environments, deeper green transition, firmly consolidated safety foundations, fully manifested cultural appeal and substantially improved governance; and that by 2035, modern people-centred cities will be essentially built.

MOHURD and the PBOC: Administrative Measures for Anti-Money Laundering Work by Real Estate Practitioner Institutions issued

On 26 August, MOHURD and the People's Bank of China issued the Administrative Measures for Anti-Money Laundering Work by Real Estate Practitioner Institutions (the "Measures"), clarifying the anti-money laundering obligations of real estate practitioner institutions and the related supervision and administration. According to the Measures, they are formulated pursuant to the Anti-Money Laundering Law of the People's Republic of China, the Counter-Terrorism Law of the People's Republic of China and other laws and regulations, in order to prevent money laundering and terrorist financing (together, "money laundering") activities, curb money laundering and related crimes, and strengthen and standardise anti-money laundering and counter-terrorist-financing work (together, "anti-money laundering") by real estate practitioner institutions. The Measures take effect from 1 September 2025.

MOF: local government debt outstanding reached RMB 52.76 tn as at end-July 2025

Data released by the Ministry of Finance showed that as at the end of July, China's local government debt outstanding reached RMB 52.76 tn, comprising RMB 17.25 tn of general debt and RMB 35.51 tn of special debt. Debt in the form of government bonds accounted for 99.7%, with outstanding non-bond debt at just RMB 160.4 bn.

Shanghai: purchase restrictions fully lifted outside the Outer Ring Road

On 25 August, Shanghai issued the Notice on Optimising and Adjusting the City's Real Estate Policies and Measures. From 26 August 2025, eligible households (Shanghai-registered households, and non-Shanghai-registered households with at least one year of continuous social insurance or individual income tax payments) face no cap on the number of commodity homes they may purchase outside the Outer Ring Road, and adult singles are treated on the same basis as families. Provident fund loan policies are optimised in parallel, with loan quotas raised and combined withdrawal-and-borrowing supported. The pricing mechanism for commercial individual housing loan rates is adjusted, and individual housing property tax policy is refined to align with the optimised purchase restrictions.

Shanghai: accelerating urban village redevelopment

On 27 August, the General Office of the Shanghai Municipal People's Government issued implementation opinions on accelerating the city's urban village redevelopment. The opinions state that urban villages will be addressed through multiple approaches - demolition and rebuilding, a combination of demolition and upgrading, or upgrading in place - by way of whole-project redevelopment, planning-led site clearance, and renovation and upgrading. Whole-project redevelopment may be implemented through land-reserve redevelopment, entrusted redevelopment, self-redevelopment by rural collective economic organisations, or cooperation with quality development entities. For urban villages designated in planning for municipal public utilities, public service facilities, green space and the like, planning-led site clearance will be implemented in line with the planning implementation sequence and project construction progress. Where heritage-character preservation, new farmers' villages or areas outside the development boundary are involved, renovation and upgrading will be implemented.

Beijing: first large-scale dedicated rental allocation for graduates, with 2,510 units on offer

On 19 August, Beijing launched its first large-scale dedicated rental allocation exercise for university graduates, covering 2,510 units across 30 affordable housing projects in nine districts including Haidian, Chaoyang and Fengtai. As at 15 August 2025, 4,161 people had registered. Of the total, the Beijing Affordable Housing Center coordinated the release of 1,240 units across 16 projects; Haidian District offered 750 units across four projects; and Tongzhou District offered 520 units across 10 projects. The exercise specifies eligible applicants as full-time graduates with a bachelor's degree or above who graduated between 2023 and 2025, and who are employed in Beijing, own no home in Beijing (including family members) and have not benefited from other housing support policies. To ease graduates' financial pressure, lease terms under the dedicated allocation are in principle capped at six years, with contracts signed every two years, annual review of tenancy eligibility in between, and renewal available to those who remain eligible.

Shenzhen: Luohu publishes "Elite Talent" rules, with settlement subsidies of up to RMB 100,000 for young talent

On 25 August, Luohu District, Shenzhen formally published the implementation rules for its 2025 "Elite Talent" policy. Young talent settling in the district may receive subsidies of up to RMB 100,000; Category A top-tier team leaders may receive a RMB 3 m award plus a RMB 8 m liveability subsidy, with core members receiving awards of RMB 1 m to 1.5 m; start-up teams additionally enjoy entrepreneurship subsidies of RMB 200,000 to 1 m.

Suzhou: two-year resale restriction on new commodity homes lifted in urban districts

On the evening of 26 August, the Suzhou Municipal Housing and Urban-Rural Development Bureau announced that, in order to better meet residents' upgrade-driven housing demand, the restriction requiring new commodity homes in Suzhou's urban districts to be held for two years after obtaining the immovable property title certificate before they may be transferred is lifted with immediate effect (except for homes subject to special transfer restrictions).

Market Watch

Shanghai: Shanghai Land Group secures a plot in Jiangqiao Town, Jiading District by agreement

On 22 August, Shanghai Land Group acquired plot 08-02 in unit JDP0-0302, Jiangqiao Town, Jiading District, Shanghai by agreement for RMB 1.47 bn. The plot is an urban village redevelopment project with a site area of 2.1 hectares and planned GFA of c. 48,200 sqm, equating to an accommodation value of RMB 30,501/sqm.

Beijing: one residential-use plot in Shunyi District sold, raising RMB 1.03 bn

On 26 August, plots 1 and 2 in Xuedarenzhuang Village, Shunyi District, Beijing were offered, with land area of 23,000.1 sqm, total construction scale of 36,800.16 sqm, a plot ratio of 1.6, a height limit of 40 m, a starting price of RMB 1.03 bn and a starting accommodation value of RMB 27,989/sqm. Beijing Maoyuan Hongzhu Real Estate Development Co., Ltd. (Maoyuan) won the plot at the reserve price of RMB 1.03 bn, at an accommodation value of RMB 27,989/sqm and a 0% premium.

Immediately east of the plot lies the Maoyuan Jingyun project, whose site came from the second batch of centralised land supply in 2022 and was ultimately won by Beijing Maoyuan with RMB 1.955 bn plus 30,000 sqm of completed-home sales area plus a high-standard commodity housing construction scheme, at a blended accommodation value of RMB 31,111/sqm, a 15% premium and a commodity housing guidance price of RMB 73,000/sqm.

Hangzhou: one residential-use plot in the Sandun unit, Xihu District sold, raising RMB 641 m

On 29 August, plot XH010401-28 in the Sandun unit, Xihu District, Hangzhou was offered, zoned for residential use compatible with commercial and business use, with a total site area of 17,254 sqm, planned GFA of 43,135 sqm, a plot ratio of 2.5, a starting price of RMB 626 m and a starting accommodation value of RMB 14,510/sqm. After four rounds of bidding, Zhejiang Poly Property Co., Ltd. won the plot for a total of RMB 641 m, at an accommodation value of RMB 14,858/sqm and a premium of 2.4%.

Chengdu: three residential-use plots sold for RMB 762 m

On 28 August, Chengdu sold three residential-use plots. Bangtai took two plots in Xipu Sub-district of Pidu District and Xindu Sub-district of Xindu District for RMB 627 m, while Chengdu Zhengcheng won the Hongguang Sub-district plot in Pidu District for RMB 135 m at a 10.87% premium.

Project Watch

Shanghai: three district-sourced public rental housing projects in Minhang coming to market, with 476 units in total

According to reports on 19 August, the Minhang district-sourced public rental housing projects "Feili Mingdi", "Yuanjiang Mingdi" and "Yuanjiang Yayuan" will shortly be released. Feili Mingdi is located at Lane 33 Jile Road, Huacao Town, Minhang District, with 305 public rental units and total GFA of 18,186.61 sqm, comprising 82 one-bedroom units (c. 37-52 sqm), 219 two-bedroom units (c. 63-65 sqm) and four three-bedroom units (c. 95 sqm), at a registered rent of RMB 46.14/sqm. Yuanjiang Mingdi is located at Lane 88 Lanlian Road, Wujing Town, Minhang District, with 52 public rental units and total GFA of 3,325.92 sqm, comprising 26 one-bedroom units (c. 56 sqm) and 26 two-bedroom units (c. 72 sqm), at a registered rent of RMB 49.09/sqm. Yuanjiang Yayuan is located at Lane 168 Lanlian Road, Wujing Town, Minhang District, with 119 public rental units and total GFA of 7,394.51 sqm, comprising 60 one-bedroom units (c. 56 sqm) and 59 two-bedroom units (c. 69 sqm), at a registered rent of RMB 48.77/sqm.

Lujiazui Group: Qiantan's first residential rental apartment scheme transferred for RMB 945 m

On 18 August, the Shanghai United Assets and Equity Exchange announced that 100% of the equity and the debt of Shanghai Hongpei Properties Co., Ltd. had formally transacted at the listing reserve price of RMB 945 m, setting a new record unit price for long-term rental apartments in Shanghai. The transaction adopted a composite "equity plus debt" pricing model, with the equity portion priced at RMB 456 m and the debt portion comprising the simultaneous transfer of the transferor's RMB 489 m claim against the target company. The interest was listed for transfer by a company under Shanghai Lujiazui Group, and its core asset is Qiantan's first rental apartment scheme - plot 46-01 in Qiantan, with a total site area of 11,746 sqm and total GFA of 57,943 sqm, of which above-ground GFA is 22,346 sqm, equating to a transaction unit price of c. RMB 42,289/sqm.

Chongqing Real Estate Group: "1+6+N" brand system unveiled

On 19 August, the Chongqing real estate brand launch event was held at the municipal SASAC, where Chongqing Real Estate Group released its "1+6+N" brand system for the first time, with Chenyu unveiled as one of the six sub-brands. Chenyu revitalises idle state-owned assets to create high-quality government-subsidised rental housing, so that new urban residents and young people can "rent with confidence and live with peace of mind". Over the past five years, Chenyu has implemented 25 projects across the central urban area, with average occupancy above 90%. On asset revitalisation, Chenyu expands its housing supply through a combined "light, medium and heavy" asset model, has established partnerships with more than ten government agencies and public institutions, and has revitalised 380,000 sqm of assets of various types, turning more than RMB 2 bn of state-owned assets from idle into productive.

Corporate Watch

Evergrande: formally delisted

On 25 August, China Evergrande was formally delisted from the Hong Kong Stock Exchange, ending nearly 16 years as a Hong Kong-listed company. HKEX had previously announced that China Evergrande's listing status would be cancelled under Rule 6.01A(1) of the Listing Rules with effect from 9:00 am on 25 August 2025.

base living and Xinyue Asset Management sign agreement to form a joint venture

On 22 August, Xinda Real Estate's Xinyue Asset Management and base living, the serviced apartment brand under Jinhe Group, formally signed a Joint Venture Agreement in Shanghai. Xinyue Asset Management, a leading industrial integrator and real estate asset management institution, will work with base living to build a joint venture platform, drawing on base living's established expertise in apartment brand products and professional operating services together with Xinyue Asset Management's capabilities in industrial integration and real estate asset management services, to jointly create a self-held mid-to-high-end apartment brand.

RMB 16 bn: Wanda and Tencent join hands

Business registration records show that companies under Wanda and Tencent recently established Shenzhen Zhishu Investment Partnership in Shenzhen, with capital contributions of c. RMB 16.076 bn and a business scope covering investment activities using own funds as well as enterprise management. Dalian Wanda Commercial Management holds c. 55% indirectly, and Tencent c. 45% indirectly.

China Travel International acquires Vanke's ice and snow business

On 26 August, according to disclosures on China Tourism Group's website, China Travel International, together with CTG Capital and Jilin Tourism Holding Group, acquired Vanke's Jilin Songhua Lake International Resort Development Co., Ltd. and Beijing Wanbingxue Sports Co., Ltd.

According to the website, this is the first large ski resort project acquired by China Travel International, and a major step in implementing national strategy, developing the ice and snow economy and revitalising Northeast China through the culture and tourism industry.

The transaction between China Travel International and Vanke covers six outdoor ski resorts (Jilin Songhua Lake Resort, Beijing Shijinglong Ski Resort, Beijing Xishan Ski Resort, Mazongshan Ski Resort in Hohhot, Inner Mongolia, Jinshanling Ski Resort in Chengde, Hebei, and Guangwu Ski Resort in Shuozhou, Shanxi), one indoor ski facility (the indoor ski slope at the Olympic Ice and Snow Centre in Baotou, Inner Mongolia) and 11 ski schools, spread across Jilin, Inner Mongolia, Beijing, Henan, Zhejiang, Hebei and elsewhere.