GRA Market Weekly (2025-09-12)

Policy Watch

State Council issues its Reply on Implementation Plans for Comprehensive Reform Pilots on Market-based Allocation of Production Factors in Selected Regions

On 11 September, the State Council issued its Reply on Implementation Plans for Comprehensive Reform Pilots on Market-based Allocation of Production Factors in Selected Regions, approving the launch, within two years from the date of issue, of 10 comprehensive reform pilots on market-based allocation of production factors - including the Beijing city sub-centre, key cities in southern Jiangsu, the Hangzhou-Ningbo-Wenzhou cluster and the Hefei metropolitan area - approving the relevant implementation plans in principle and publishing them in full. The Reply requires that implementation use the comprehensive reform pilots as the lead to deepen reform of market-based factor allocation, improve institutional arrangements and rules for factor markets, and work to remove systemic and institutional obstacles to the free flow and efficient allocation of factors; to ensure that economic entities under all forms of ownership can use factors of production equally under the law, participate in market competition fairly and receive equal protection under the law; and to raise factor quality progressively, keep factors of production flowing smoothly, allocate resources of all kinds efficiently and unlock market potential fully - providing strong support for developing new quality productive forces, advancing the construction of a unified national market and building a high-standard socialist market economy system.

Market Watch

Shanghai: record unit price for new apartments broken again

Jinling Huating Phase II recently opened for subscription. This release comprises 120 units of large flat-floor apartments of c. 360-875 sqm, with the unit-by-unit price list now published. The average price for this batch is RMB 205,000/sqm, with an average total price of c. RMB 82.03 m per unit. Among them, the c. 865 sqm penthouse duplex in the eastern stack of Tower T2 is priced at c. RMB 283 m, or RMB 326,800/sqm - surpassing the RMB 302,700/sqm high set this year by Poly Expo Tianyue and the RMB 302,000/sqm high set last year by Binjiang Arc de Triomphe, setting a new record unit price for new apartments in Shanghai in recent years.

Beijing: land auction raises RMB 3.346 bn

On 5 September, Beijing offered two residential-use plots, located in Fengtai and Chaoyang districts, with combined site area of 27,072.59 sqm, total planned GFA of 65,588 sqm and a combined starting price of RMB 3.346 bn. Both plots sold successfully, for total proceeds of RMB 3.346 bn.

Project Watch

Chengdu: Suisse Place apartment hotel officially opens in the bustling Chunxi Road retail district

On 3 September, CJIA's Suisse Place southwest flagship opened. This is the first serviced-apartment product under Huazhu's CJIA to land in southwest China. Unlike earlier domestic brands positioned in long-term rental apartments, this property is positioned as a serviced apartment, meeting the needs of nearby business travellers and family guests through "full-cycle service + flexible leasing". It offers 180 units with enlarged storage space; facilities include washer-dryers, built-in dishwashers and microwaves; guests enjoy shared amenities on arrival, including a gym, a leisure book bar and a multi-function hall.

Shanghai: Funlive Serviced Apartments Wujing officially opens

Funlive Serviced Apartments Wujing, under Funlive Apartments, a leading domestic mid-to-high-end serviced apartment brand, recently opened officially. The project is located at Lane 3966, Lianhua South Road, in the core of the "Greater Zero-One Bay" area, just 200 m from Yongde Road station on Metro Line 15. With total GFA of 37,533 sqm, its two buildings provide 810 units in total, including 497 studios of 40 sqm, 111 one-bedroom units of 60 sqm and two two-bedroom units of 118 sqm. This diversified unit mix covers the mainstream living scenarios of the new generation comprehensively.

Changsha: Beijing Lichi acquires Wanda Vista Changsha for RMB 514 m

On 9 September, according to the JD Auction mini-programme, the auction of R&F Wanda Vista Changsha was concluded. The hotel was publicly auctioned on the JD Auction platform by the Guangzhou Intermediate People's Court of Guangdong Province, with an appraised value of c. RMB 642 m and a starting price of RMB 514 m. The auction closed at 10:02 on 9 September with only one registered bidder placing a single bid, closing at RMB 514 m and drawing over 120,000 onlookers. Per the published confirmation of sale, Hunan Lichi Consulting Management Co., Ltd. won through the auction with the highest bid.

The hotel is located on Xiangjiang Middle Road in Changsha. The asset comprises the entire hotel property, covering 416 guestrooms, a conference centre, a banquet hall and the top-tier private club "Mingshi Hui", as well as two basement levels of plant rooms, with GFA of 65,772.28 sqm. In July 2017, R&F Properties acquired the entire equity of 77 Wanda Commercial hotels for RMB 19.906 bn, after which Wanda Vista Changsha was renamed R&F Wanda Vista Changsha.

Corporate Watch

Blackstone: acquires a branded hotel in Miami

Market sources report that Trinity Investments and Certares Real Estate Management LLC have announced the completion of the sale of the EAST Miami hotel to Blackstone Real Estate. The hotel forms part of Brickell City Centre, which Swire created with a USD 1.05 bn investment in 2016. Located in the core of Miami's Brickell neighbourhood, Brickell City Centre is an integrated retail-and-residential landmark that has drawn attention since opening in 2016. EAST Miami has 352 guestrooms, including 89 serviced apartments, plus several food and beverage venues.

Blackstone: takes a stake in a Dubai property information platform

Blackstone and private equity firm Permira recently announced they would acquire a minority stake in Dubai-headquartered property classifieds platform Property Finder for USD 525 m. The deal shows investor interest in Dubai's property market remains strong. On completion, Property Finder will be able to draw on the global resources of Permira, Blackstone and General Atlantic to continue expanding the platform and pursue further growth in Middle East and North Africa property markets. Dubai, as the Gulf's business and tourism hub, has enjoyed a post-pandemic property boom, benefiting from foreign capital inflows and government-led residency reforms. Per Knight Frank, Dubai residential prices rose by nearly 70% over four years to December 2024.

Vanke: set to exit China's largest urban renewal project

Media reports indicate that CITIC Urban Development, under CITIC Group, plans to invest RMB 12 bn for a 50% stake in phases 2-3-4 of LVGEM (China)'s Baishizhou project, with existing shareholder Vanke likely to exit. Shenzhen's Baishizhou redevelopment, billed as "the largest urban renewal project in China", sits in the core of Shenzhen's Nanshan District, with total planned GFA of 3.58 m sqm and estimated saleable value of c. RMB 220 bn. The project was initiated in 2005, entered Shenzhen's urban renewal register in 2014 and received approval in 2018. Vanke reportedly joined one month after construction started on residential phase 1, injecting RMB 2.3 bn for an 8% stake in the project company.

CapitaLand: ChinaAMC CapitaLand Commercial REIT closes a red-hot offering with public subscriptions over 535x

The offering results for ChinaAMC CapitaLand Commercial REIT (fund code 508091) have been announced. Before pro-rata allocation, aggregate subscription funds reached RMB 309.17 bn, with effective subscription multiples of over 535.2x for public investors and over 252.6x for offline investors - a record high for consumption REITs, underscoring market recognition of and appetite for the first foreign-sponsored consumption REIT.

The REIT's initial underlying assets are two shopping centres, CapitaMall Yunshang and CapitaMall Yuhuating, located in Guangzhou and Changsha respectively, forming a portfolio combining a tier-1 and a strong tier-2 city that diversifies risk with complementary strengths. Both assets have operated for over nine years, with a rich mix of formats and brands and solid fundamentals.

Chindata's 100% equity to be acquired by Dongshu No. 3 in China's largest-ever IDC M&A deal

On the evening of 10 September, Dongyangguang (HEC) announced that the company and its controlling shareholder, Shenzhen Dongyangguang Industrial Development Co., Ltd. ("Shenzhen Dongyangguang Industrial"), would jointly inject capital into Yichang Dongshu No. 1 Investment Co., Ltd. ("Dongshu No. 1"), contributing RMB 3.5 bn and RMB 4 bn respectively. At the same time, Dongshu No. 1, through its wholly owned second-tier subsidiary Yichang Dongshu No. 3 Investment Co., Ltd. ("Dongshu No. 3"), plans to acquire 100% of the equity of the operating entity of Chindata's China business. On completion, Dongyangguang will become a minority shareholder of Dongshu No. 1 and hold an indirect interest in Chindata China. Chindata also announced on 10 September a new milestone in its development - a consortium buyer led by Shenzhen Dongyangguang Industrial and comprising insurance investment institutions and local government funds has formally reached a transaction agreement with Bain Capital to acquire all of Chindata's China business for RMB 28 bn in cash. This is the largest M&A transaction in China's data centre industry to date.

Easing of purchase restrictions in Beijing and Shanghai drives a transaction recovery

Per China Index Academy, more than 420 new property policies have been issued nationwide so far this year; among the 30-plus policies issued in August, the easing of purchase restrictions in Beijing and Shanghai was without doubt the focus of market attention. Both markets responded positively after implementation: new-home and second-hand transactions both grew in Beijing, with new homes rising more markedly and monthly online registrations up nearly 9% MoM. Shanghai also warmed, with visits and subscriptions rising notably at key new-home projects outside the outer ring; per Anjuke data, Shanghai second-hand transactions approached 20,000 units in August, a four-year high for the period. Beyond Beijing and Shanghai, property policy easing continued across the country in August - Suzhou lifted resale restrictions, Guangxi proposed optimising price caps, and Changchun planned to cut down-payment ratios for new-home loans - with a series of targeted measures either in preparation or already implemented; Shenzhen also began gradually relaxing purchase restrictions from September, as cities nationwide build momentum for the traditional "golden September and silver October" peak season.

Listed property management companies' 2025 interim results

To date, apart from two companies that deferred their interim reports, all 63 listed property management companies have published 2025 interim results. In H1 2025, the 53 listed property managers that disclosed managed floor area had total managed area of c. 7.79 bn sqm, up 3.8% YoY, with growth slowing by 5.3 ppts from a year earlier. Country Garden Services had the largest managed area at 1.063 bn sqm, followed by Poly Property Services at 834 m sqm, with the top two clearly ahead of the rest of the listed field.

Since the start of 2025, proactive exits from project management contracts have become routine. Branded managers including China Overseas Property, Binjiang Service, Longfor Property and Jinke Smart Services have continued to give up some managed projects under sustained pressure. China Overseas Property exited 26.8 m sqm, while Ever Sunshine Services, Shimao Services and Jinke Smart Services each exited more than 10 m sqm.

Taken together, the reasons for these exits are chiefly that, under multiple pressures - rising costs, falling collection rates and sluggish growth in value-added services - companies are continuously replacing low-quality, low-efficiency projects.

22 cities add 18,000 centralised apartment units

In August, supply-side momentum in the national rental market continued to build, injecting strong vitality into the market. Major branded apartment operators accelerated new launches, and government-subsidised rental housing led by local SOEs came to market intensively, effectively filling gaps in housing demand. Per incomplete statistics, 55 representative centralised apartment projects newly opened across 22 cities nationwide in August 2025, totalling nearly 18,000 units. By asset type, 37 were newly built projects with over 13,000 units in total, while 18 were conversions of existing assets with over 4,000 units. By market attribute, 38 were government-subsidised rental housing projects with 11,000 units, while 17 were market-rate projects with over 6,600 units.

By city, representative new openings extended from tier-1 cities to new tier-1 and tier-3 cities and spread comprehensively, forming a diversified network covering cities at different levels of economic development and with different population mobility characteristics. Shanghai, Shenzhen, Jinan, Chengdu and Suzhou were the five cities with the largest supply of representative new openings this period.