GRA Market Weekly (2025-09-26)

Macro Policy

SCIO: press conference series on "high-quality completion of the 14th Five-Year Plan" - over RMB 1.6 tn of funding for the "three major projects"

On 22 September, the State Council Information Office held a press conference in its series on the "high-quality completion of the 14th Five-Year Plan", at which PBoC Governor Pan Gongsheng, NFRA Director Li Yunze, CSRC Chairman Wu Qing, and PBoC Deputy Governor and SAFE Administrator Zhu Hexin briefed the media on the financial sector's achievements during the 14th Five-Year Plan period and took questions. Points raised included:

• During the 14th Five-Year Plan period, multiple measures were taken to stabilise financing, providing over RMB 1.6 tn of funding support to the "three major projects" including affordable housing, with rental housing loans growing at an average annual rate of 52%
• The PBoC led the establishment of the urban real estate financing coordination mechanism, under which "white list" project loans exceeded RMB 7 tn, supporting the construction and delivery of nearly 20 m homes and firmly safeguarding homebuyers' lawful rights
• On financial support for defusing real estate risk, the PBoC, acting within its macro-prudential management remit, optimised and adjusted policies including down-payment ratios and mortgage rates, and lowered rates on existing mortgages, reducing interest expenses by c. RMB 300 bn a year for more than 50 m households

Targeted Policies

Dongguan: multiple measures to further optimise property policy, with purchase subsidies of up to RMB 30,000

On 25 September, the Dongguan Housing and Urban-Rural Development Bureau and five other departments jointly issued the Notice on Further Optimising Real Estate Policy Measures, setting out measures across six areas to boost demand and improve supply.

On the demand side:

• Implementing time-limited purchase subsidies, granting eligible buyers of new homes a subsidy of 2% of the total contract price, capped at RMB 30,000, to help release purchase demand
• Optimising first-home determination standards, narrowing the review scope for first-home status on new home purchases from the whole municipal administrative area to the town/sub-district (or park) in which the property to be purchased is located, thereby widening the coverage of preferential first-home loan policies
• Strengthening housing provident fund support, through measures including optimising maximum loan amounts for first and second homes, the upward adjustment allowance for loans on for-sale government-subsidised housing, contribution-to-income ratio assessment, and withdrawing provident fund balances to pay down payments, further easing residents' purchase funding pressure

On the supply side:

• Refining the land supply adjustment mechanism linked to housing conditions, matching land supply appropriately to inventory so as to promote dynamic supply-demand balance at source
• Supporting reasonable functional conversion of existing commercial and office space, simplifying procedures for the "functional rebirth" of existing commercial-office properties
• Optimising administrative approval services for real estate projects, through measures including market-based pricing, "title certificate on delivery", phased planning verification and acceptance and building-by-building first registration, "single-unit mortgages" on buildings under construction, and "transfer with mortgage attached" for newly built commodity homes, further energising market participants and lowering corporate financing costs

Guangzhou: new policy allows self-held housing arising from "self-holding bids" to convert to for-sale housing

On 23 September, the Guangzhou Municipal Bureau of Planning and Natural Resources formally released its Implementation Plan for the Comprehensive Reform Pilot to Improve Land Use Efficiency in Guangzhou, introducing 31 major measures across six areas - the land system, industrial land, revitalisation of existing stock, underground space, urban and rural markets, and marine development - to build a system of efficient resource use spanning "greater benefit, better efficiency, released capacity, added dimensions, broader reach and greater depth". Among them, self-held housing that arose from the use of "self-holding bids" to control land prices during the property boom may, in areas with an inventory clearance cycle of under 18 months, be converted to for-sale housing after the enterprise pays the applicable land premium top-up in accordance with the law. Self-held commercial-office properties may bring in high-growth companies and upstream or downstream players in the industrial chain through a "targeted tenanting plus whole-block transfer" model, but strata sale is strictly prohibited, as is conversion into "quasi-residential" products.

Market Watch

Xiamen: land auction raises RMB 8.125 bn, with all four residential plots sold at reserve price

On 23 September, Xiamen sold four residential-use plots located in Jimei, Siming, Huli and Haicang districts, raising RMB 8.125 bn in total. Xiangyu & Jimei Development, Xiamen ITG, C&D and Xiamen Metro each took one plot.

Nanjing: land auction raises RMB 4.445 bn, with all seven residential plots sold at reserve price

On 24 September, Nanjing sold seven residential-use plots - one in Yuhuatai, three in Qixia and three in Jiangning - with total site area of 306,700 sqm, total planned GFA of 505,800 sqm and a combined starting price of RMB 4.445 bn. All plots sold at reserve price, raising RMB 4.445 bn in total.

Chengdu: land auction raises RMB 2.278 bn, with a China Railway Construction consortium paying a premium

On 24 September, Chengdu's central urban districts offered a further three residential-use plots - two in Tianfu New Area and one in the Eastern New Area - with total site area of 101,300 sqm, total planned GFA of 183,600 sqm and a combined starting price of RMB 1.986 bn. Two plots ultimately sold at premiums and one at reserve price, raising RMB 2.278 bn.

Project Watch

Jinan: first international-brand long-term rental apartments, Xiantou Yayu, officially open with 2,052 units planned

On 25 September, Jinan Xiantou Yayu Apartments (Start-up Area), developed and built by Xiantou Group and operated and managed by Singapore's Ascott, officially opened. Located in the core of Jinan's Start-up Area with convenient transport links, the project is planned with 2,052 fully fitted units, including studios and one- and two-bedroom layouts, meeting the needs of tenant groups ranging from single young professionals to families. All rooms are equipped with branded appliances and smart home systems, delivering the twin conveniences of "move-in ready plus flexible lease terms". The project also features a 3,500 sqm "Yayu Shared Home" complex combining retail, fitness and leisure, and co-working uses, providing residents with a richer, higher-quality living experience and diverse social spaces.

Chengdu: first TOD residential government-subsidised rental housing project opens its doors, with 187 units in the first batch

On 25 September, Chengdu's first TOD residential government-subsidised rental housing project - Rail City | Yujian Machangba Qingyun Lanxiyuan - was formally unveiled, with the first batch of 187 newly fitted units open for online registration from the 28th. The Machangba TOD government-subsidised rental housing project is located in Kanghe Sub-district, Qingyang District, Chengdu. The 187 units released have GFA of c. 96-137 sqm, comprising 13 two-bedroom, 147 three-bedroom and 27 four-bedroom homes.

Shenzhen: You+ Apartment's Baolong and Longgang Central City stores open, supplying nearly 800 units in total

China Resources Land's rental housing brand You+ Apartment recently opened two new stores in succession in Shenzhen - the Baolong store and the Longgang Central City store - both located in Longgang District, together supplying nearly 800 government-subsidised rental housing units. The Baolong store, in Baolong Sub-district, Longgang District, offers 710 studio apartments of c. 27 sqm GFA. The Longgang Central City store, at the northeast corner of the junction of Jianshe Road and Songzailing 2nd Road, has now entered full operation and reached full occupancy in just 40 days - the fastest lease-up in You+'s history.

Corporate Watch

DNE Group: new RMB fund closed at c. RMB 3.5 bn

DNE Group recently announced the successful closing of its new RMB fund (the "Fund"), which will invest in quality new-economy infrastructure assets nationwide. The Fund has an investment scale of c. RMB 3.5 bn and will focus on two quality asset classes: modern, high-standard logistics assets in the country's core hub cities; and quality manufacturing facilities and advanced manufacturing centres (smart manufacturing parks) in mature industrial clusters. The portfolio is precisely targeted at the strong infrastructure demand generated by new-economy sectors such as e-commerce, smart manufacturing and supply chain upgrading, aiming to deliver stable and sustainable returns for investors. So far this year, DNE's fundraising has approached RMB 5 bn, and it recently received formal approval for the expansion of its new-economy public REIT, with issuance expected to complete before year-end.

MBK Partners: full acquisition of Suzhou Huayi Brothers Movie World completed

On 21 September, Haiheian Cultural Tourism, part of MBK Partners - Asia's largest private equity buyout fund - formally completed the full acquisition of the former Suzhou Huayi Brothers Movie World, which will henceforth engage Chinese visitors under its new identity as "Haiheian Suzhou Yangcheng Peninsula Park". The Suzhou Huayi Brothers Movie World project sits in the core of the national-level Yangcheng Lake Peninsula Tourism Resort in Suzhou, occupying 690 mu. Renamed "Haiheian Suzhou Yangcheng Peninsula Park", it plans to invest RMB 100 m in three new attractions, with the aim of upgrading into the Yangtze River Delta's first lakeside immersive entertainment and tourism destination.

Jinke Property: RMB 147 bn debt restructuring takes effect in what may be the largest restructuring in property history

On 23 September, Jinke Property Group Co., Ltd. announced that implementation of the Jinke Property Group Co., Ltd. Restructuring Plan will result in changes to the company's controlling shareholder and ultimate controller. The controlling shareholder will change from Jinke Holdings to Jingyu Xingzhu and Jingyu Xingcan, and the ultimate controller from Huang Hongyun to none. Under the relevant agreements, the Shanghai Pinqi consortium has designated Jingyu Xingzhu and Jingyu Xingcan, which it controls, to receive a transfer of 993 m capitalisation shares in aggregate, representing 9.34% of total share capital, becoming the company's largest shareholder.

The restructuring covers RMB 147 bn of debt at Jinke Property and its subsidiary Chongqing Jinke Real Estate Development Co., Ltd., with over 8,400 creditors. Jinke Property will become not only the first listed developer in China to successfully resolve over RMB 100 bn of debt through judicial restructuring, but also the largest restructuring case in the property sector's history.

Keppel: RMB 3.95 bn acquisition of Tokyo Data Centre 3

On 24 September, Singapore's Keppel DC REIT announced that, together with parent company Keppel Ltd., it will acquire Tokyo Data Centre 3 in Inzai City, Japan for c. RMB 3.95 bn (JPY 82.1 bn), with completion expected by the end of 2025. The freehold data centre was newly completed in 2025 and is currently 100% let to a leading global cloud service provider on a 15-year lease with step-up provisions. Keppel DC REIT will hold 98.47% and Keppel Ltd. 1.53%. To fund the acquisition and subsequent projects, the REIT plans to raise SGD 404.5 m from existing unitholders via a rights issue of 80 units for every 1,000 held at SGD 2.24 per unit. On completion, the REIT's assets under management will rise to SGD 5.7 bn across 25 data centres, gearing will rise from 30% to 34.5%, and FY2024 distribution per unit will increase by 2.8%.

China Overseas: Huzhou state-owned buyer takes China Overseas International Center offices in Haikou for RMB 139 m

Haikou's judicial auction market recently saw a significant real estate transaction, with a package of 37 units at Tower 2 of China Overseas International Center, No. 57 Binhai Avenue, Longhua District, knocked down to Huzhou Chanfeng Enterprise Management Partnership (Limited Partnership) for RMB 139.29 m, against an appraised value of RMB 248.74 m. The buyer is a local Huzhou state-owned enterprise. The 27 units auctioned have total GFA of 15,000.4 sqm and comprise offices on commercial-financial land; the 20-storey building is complete but in bare-shell condition internally.

Beijing Capital Development: new housing rental company established in Beijing with registered capital of RMB 20 m

On 15 September, Beijing Shoukai Leshang Housing Rental Co., Ltd. was recently established with registered capital of RMB 20 m. The newly established company's business scope includes housing rental, property management, non-residential real estate leasing and car park services.

Market Data

Commercial real estate en-bloc transactions recover: RMB 144.3 bn in the first eight months, close to the full-year 2024 level

On 26 September, CRIC data showed that China's commercial real estate en-bloc transaction market is becoming an important window on economic vitality, with market expectations gradually repairing and capital quietly returning. Per the latest CRIC Asset Management data, in the first eight months of 2025, 185 en-bloc property transactions were completed across 32 mainland Chinese cities, totalling RMB 144.3 bn - up 36% YoY and already close to the full-year 2024 level. The market warmed noticeably in August, with 15 deals completed in the month totalling c. RMB 23.44 bn, up a modest 3.3% YoY, at an average deal size of c. RMB 1.62 bn, up sharply by 127% YoY.