GRA Market Weekly (2025-09-06)

Policy Watch

State Council General Office: support for sports venues and facilities issuing public REITs

On 4 September, the Chinese government website published the State Council General Office's Opinions on Unleashing Sports Consumption Potential and Further Advancing High-Quality Development of the Sports Industry, setting an overall target for 2030 of a substantial step-up in the sports industry, with total scale exceeding RMB 7 tn. On enriching the supply of sports venues, the Opinions call for a master plan for a national trail system. Specific measures include:

• Continue the "national ball sport into communities" and "national ball sport into parks" campaigns, and promote the construction of neighbourhood-level sports venues and facilities such as outdoor sports facilities, national fitness centres, sports parks and community football pitches.
• Support the construction of eligible sports venues and facilities through central budgetary investment, local government special bonds and lottery public welfare funds.
• Support eligible projects in issuing infrastructure real estate investment trusts (REITs).
• Guide financial institutions to optimise investment and financing services, strengthen credit management, enrich credit products and actively develop business lines such as intellectual property pledge lending. Support eligible sports enterprises in listing and refinancing, issuing bonds and undertaking asset securitisation.

MOF and PBOC: joint working group meets to advance fiscal-monetary policy coordination

On 4 September it was reported that the joint working group of the Ministry of Finance and the People's Bank of China held its second group-leader meeting in Beijing, aimed at implementing more proactive macro policy and strengthening coordination between fiscal and monetary policy. Going forward, the group will continue to leverage the joint working group mechanism, deepen cooperation, strengthen coordination, promote the steady and healthy development of the bond market, and ensure policies take effect.

Fuzhou: housing provident fund policy to be optimised

On 1 September, Fuzhou proposed optimising its housing provident fund withdrawal policy: (1) relaxing the time limits for withdrawals for home purchase and for settlement of home purchase loans, extending the window from "within one year" to "within three years"; (2) allowing withdrawals for the purchase of garages/parking spaces; (3) allowing withdrawals for elevator replacement.

Shanghai: new round of adjustments to existing mortgage rates formally begins

On 1 September, Shanghai formally launched a new round of adjustments to existing mortgage rates, under which second-home borrowers may apply to have their rate lowered to the first-home standard. Several buyers completed the process that day via the mobile apps of China Construction Bank and Bank of Beijing, with rates falling from 3.45% to 3.36%, a reduction of 9 basis points.

Market Watch

Nanjing: land auction demand diverges, raising RMB 3.07 bn

On 30 August, Nanjing offered four residential-use plots, of which one cleared at a premium and three at reserve price; total transacted GFA was 372,000 sqm for total proceeds of RMB 3.07 bn, at a premium of 8.69%. Jiangsu Chengzhang took the Jiangning buy-back housing plot at a 44.24% premium, while the other three were absorbed by local government financing vehicles.

Guangzhou: land auction raises RMB 506 m as Xiamen ITG Real Estate lands in Baietan

On 2 September, Guangzhou successfully sold one residential plot in Liwan District, raising RMB 506 m. Plot AF0107048 in Shiweitang, Liwan District sits in the Baietan area with planned GFA of 23,500 sqm; Xiamen ITG Real Estate secured it for RMB 506 m at an accommodation value of RMB 21,500/sqm and a premium of 0%.

Shanghai: seventh land auction batch raises RMB 11.1 bn

On 4 September, Shanghai concluded its seventh land auction batch of 2025, successfully selling five plots with total site area of 139,929.87 sqm, total planned GFA of 237,146.94 sqm and a combined starting price of RMB 9.867 bn, for final proceeds of RMB 11.116 bn; three plots cleared at a premium and two at reserve price. This was the first land auction since Shanghai eased home purchase restrictions on 25 August, and the market sustained its strong momentum. Bidders included Yucheng Group and Changjiang Jinggong, two private enterprises entering the Shanghai property market for the first time, both of which secured land.

Central and local SOEs remain the mainstay of Shanghai's land market. China Railway Real Estate took plot I4-01 in unit N090601, Yangpu District for RMB 2.736 bn at a 28.09% premium and an accommodation value of RMB 92,225/sqm - the second highest accommodation value in the East Bund area, behind only the Pingliang community residential plot inside the inner ring. With a plot ratio of 1.8 and a 24 m height limit, the site may be developed as a low-density garden-house community targeting upgrade buyers at the premium end.

Project Watch

Shanghai: Jinmao Hengmian Apartments officially opens

On 27 August, Jinmao Hengmian Apartments in Pudong New Area, Shanghai, under China Jinmao's hotel and commercial arm, officially opened. It is Jinmao's first high-end apartment project in Pudong, sitting within the catchment of Zhangjiang Science City and the Disney Resort, covering clusters of advanced technology enterprises and abundant cultural-tourism resources. Jinmao Hengmian Apartments offers unit types of 44-104 sqm.

Poly Property: Guangzhou Baietan plot to be developed with Marriott as a luxury hotel

On 1 September it was reported that the core Lujulu plot in Guangzhou's Baietan area, secured by Poly Property for RMB 3.8 bn, will be developed under a strategic partnership with Marriott, with a planned investment of RMB 1 bn to create the area's first Marriott-branded luxury hotel. The project adopts a combined "hotel + luxury residential" development model, marking Marriott's first entry into Guangzhou's core Baietan business district; the five-star hotel will feature an international conference centre, a rooftop dining cluster and over 200 river-view guestrooms.

Shenzhen: the world's largest physical book mall unveiled

On 31 August, the world's largest physical book mall - "Eye of the Bay Area" - began internal trial operations in Shenzhen, marking the birth of another cultural landmark in the Guangdong-Hong Kong-Macao Greater Bay Area. The project is expected to open formally to the public on 26 September, when it will welcome readers in its best condition.

"Eye of the Bay Area" is built and operated by Shenzhen Publishing Group and located on the eastern side of the central green axis in Bao'an's central district, within the coastal core of the Qianhai area, adjacent to Bao'an District Library and the Youth Palace. As a landmark cultural-tourism destination for the Greater Bay Area, the project aims to become a new cultural-tourism landmark serving Guangdong, Hong Kong and Macao and radiating across the Bay Area.

"Eye of the Bay Area" has total GFA of 38,000 sqm, divided into north and south zones. The north zone comprises four spaces - Art Garden, Humanities Panorama, Borderless Living and the Youth Art Cluster; the south zone houses a 10,000 sqm Bay Area Folk Culture Hall plus two spaces, Joy META and the Bay Theatre. Built on a "culture + park" concept as a walkable, fully ecological cultural park, the project brings together four integrated themes - "culture + technology", "culture + tourism", "culture + art" and "culture + creativity" - delivering a cultural experience that comprehensively surpasses the traditional book mall through a renewed cultural ecosystem, an array of digital technologies and a creatively refreshed operating paradigm.

Corporate Watch

Longfor's Goyoo: H1 rental income of RMB 1.24 bn with overall occupancy holding high at 95.6%

On 29 August, Longfor Group Holdings Limited released its interim results for the period ended 30 June 2025. As at 30 June 2025, its long-term rental apartment brand Goyoo had opened a cumulative 127,000 units; through continual refinement of product and service it kept upgrading the rental experience, delivering overall occupancy of 95.6% and rental income of RMB 1.24 bn, with industry-leading profitability. Two "Huansi" vibrant blocks debuted in Hefei and Chengdu in the first half, refreshing city life with an innovative hybrid space combining quality apartments and street-format retail.

Dajia Investment Holdings: RMB 4.5 bn long-term rental housing fund established with Dajia Life and other insurers

On 28 August, the closing ceremony for the Dajia Long-term Rental Housing Fund was held in Beijing. Initiated by Dajia Investment Holdings and established jointly with insurers including Dajia Life, AIA Life, Manulife-Sinochem Life and Fosun Prudential Life, the fund totals RMB 4.5 bn and will focus on government-subsidised rental housing projects in tier-1 cities such as Beijing and Shanghai. It is the insurance industry's first value-add strategy long-term rental housing fund, committed to raising asset performance and service standards through market-based, professional operations, providing high-quality, affordable living space for urban strivers and supporting the livelihood goal of adequate housing for all.

Poly Developments: joint development of plot E1-08A and a North Bund plot with Shanghai Land Group

On 3 September, Poly Developments announced it would jointly develop one plot in Xinjiangwan and one on the North Bund with Shanghai Land Group. The equity transfers for both plots have been completed through the Shanghai United Assets and Equity Exchange. Plot E1-08A is c. 1.2 km from Xinjiangwancheng station, with a plot ratio of c. 1.1 and a 20 m height limit. It has a site area of c. 57,100 sqm and GFA of c. 62,800 sqm, with a minimum of 455 residential units.

August land market sees both volumes and prices fall, with sentiment down sharply from July

As at 25 August, nationwide commercial land sold via tender, auction and listing totalled 40.74 m sqm, down 14% YoY, with the decline narrowing by 1 ppt from the previous month; transaction value was RMB 95.3 bn, down 16% YoY, mainly reflecting a lower share of quality residential land in higher-tier cities during the month.

Land auction sentiment cooled in tandem in August, with only a handful of quality residential plots in Shenzhen and Hangzhou clearing at high premiums. The average accommodation value was RMB 2,339/sqm, down 3% YoY, and the average premium was 5.6%, the second lowest of the year. Market sentiment continued to diverge: tier-1 cities held a high average premium of 26.64%, a monthly high for 2025, while tier-2 cities averaged just 2%, the lowest of the year.

Listed developers publish 2025 interim results as operating performance diverges further

Among the TOP 50 listed developers that have published 2025 interim results, net profit attributable to the parent totalled RMB -98.483 bn in the first half, with losses widening by RMB 32.3 bn YoY. Of the 50, 33 were loss-making, over 60% of the total; 36 reported YoY revenue declines, over 70% of the total. This reflects an industry still in a deep adjustment phase overall.

At the same time, the industry is showing a degree of divergence, with turnarounds into profit and first-time losses coexisting. Four developers swung from profit to loss: Hopson Development, Greenland Holdings, Cinda Real Estate and China Aoyuan. Cinda Real Estate posted a net loss attributable to the parent of RMB 3.69 bn, Greenland Holdings a net loss of RMB 3.506 bn and China Aoyuan a net loss of RMB 8.814 bn.

Three developers reversed losses, with net profit attributable to the parent turning positive in the first half: Sino-Ocean Group, Zhongzhou Holdings and Grandjoy Holdings. Sino-Ocean Group booked a profit of RMB 10.2 bn, against a loss of RMB 5.382 bn a year earlier. This, however, was largely underpinned by non-cash gains from offshore debt restructuring rather than any improvement in the underlying operating business.

Among the TOP 50 listed developers, 17 remained profitable in the first half, with aggregate net profit attributable to the parent of RMB 45.272 bn, the vast majority of them state-owned. In H1 2025, Poly Developments, China Overseas and China Resources Land each recorded sales above RMB 100 bn, holding the industry's top three positions; they were also among the most profitable in the first half, with combined net profit attributable to the parent of RMB 23.19 bn, or 51% of the total for the 17 still-profitable developers.

China Resources Land emerged as the "profit king", with H1 net profit attributable to the parent of RMB 11.88 bn - more than the combined net profit of Poly Developments and China Overseas - up 16.2% YoY; revenue was RMB 94.92 bn, up 19.86% YoY, a rare performance in the current industry. In 2024, China Resources Land was already the industry's "profit king" with net profit attributable to the parent of RMB 25.5 bn.