GRA Market Weekly (2025-10-11)

Macro Policy

MOHURD: c. 5.0 bn sqm of new commodity homes sold during the 14th Five-Year Plan, with over 11 m subsidised and resettlement housing units delivered

At the State Council Information Office press conference series on "delivering the 14th Five-Year Plan to a high standard" on 11 October, MOHURD Minister Ni Hong said housing conditions had improved further during the 14th Five-Year Plan period. Nationwide, c. 5.0 bn sqm of new commodity homes were sold, and more than 11 m units (rooms) of government-subsidised housing and resettlement housing tied to urban village and dilapidated housing redevelopment were built or sourced, benefiting over 30 m people.

Ministry of Natural Resources issues Planning Guidelines for Revitalising and Optimising Existing Urban Space, making stock revitalisation a priority for territorial spatial planning

On 10 October, the Ministry of Natural Resources released the Planning Guidelines for Revitalising and Optimising Existing Urban Space, which designate the revitalisation and optimisation of existing space as one of the key tasks of future territorial spatial planning. The ministry noted that as China's urban development enters an "era of stock", the emphasis shifts away from large-scale demolition and construction towards making better and fuller use of land already in place. As the first technical standard within the territorial spatial planning system focused on stock revitalisation, the Guidelines clarify the principles local authorities should follow when preparing territorial spatial plans for the revitalisation and optimisation of existing urban space, and provide specific technical guidance to help localities tackle the challenges of managing existing stock.

Targeted Policies

Wuhan launches first-home mortgage interest subsidy: 1% of the original loan amount, capped at RMB 20,000 per household

On 30 September, the Wuhan Municipal Bureau of Housing and Urban Renewal and other departments jointly issued the Notice on Policy Measures to Further Promote the Stable and Healthy Development of Wuhan's Real Estate Market, which introduces a first-home mortgage interest subsidy for designated areas. Between 1 October and 31 December 2025, families purchasing their first new commodity home with a commercial mortgage in outer districts including the East Lake High-tech Development Zone (600133), the Economic and Technological Development Zone and the Yangtze River New Area, as well as parts of the area outside the Third Ring Road, may receive an interest subsidy equal to 1% of the original loan amount, capped at RMB 20,000 per household and disbursed in two equal annual instalments.

Yunnan: nine departments jointly issue guidance to accelerate market stabilisation, with seven measures

Nine departments including the Yunnan Provincial Department of Housing and Urban-Rural Development, the Yunnan Provincial Development and Reform Commission and the Yunnan Provincial Department of Finance have jointly issued Guiding Opinions on Further Accelerating the Stabilisation and Recovery of Yunnan's Real Estate Market. The Opinions set out seven measures, including:

Strengthening housing subsidy and preferential policy support
Further increasing housing provident fund support for housing consumption
Revitalising underused existing land and existing housing stock
Increasing the supply of high-quality "good housing"

Hefei issues Notice on Promoting the Stable and Healthy Development of the Real Estate Market, with ten policy measures

On 30 September, the Hefei Municipal Housing Bureau issued the Notice on Promoting the Stable and Healthy Development of the Real Estate Market, setting out ten policy measures, including:

Optimising land supply
Refining planning administration policies
Continuing to advance "good housing" construction
Steadily implementing urban renewal action
Actively advancing integrated district-level development
Optimising housing provident fund lending policies

Market Watch

Guangzhou: two Baiyun District residential plots fetch RMB 1.977 bn, top premium above 16%

On 10 October, Guangzhou offered two residential plots in Baiyun District with a combined site area of 43,473 sqm, planned GFA of 137,405 sqm and a combined starting price of RMB 1.887 bn. One plot sold at reserve price and one cleared at a premium above 16%, for total proceeds of RMB 1.977 bn.

Nanjing: two auctions sell seven residential-use plots for c. RMB 5.537 bn in total

On 30 September, Nanjing sold six residential-use plots - one each in Qinhuai, Jianye and Jiangning districts, two in Luhe District and one in Jiangbei New Area - with a combined site area of 217,300 sqm, planned GFA of 355,300 sqm and a combined starting price of RMB 4.141 bn. One plot cleared at a premium and five at reserve price, for total proceeds of RMB 4.214 bn.

On 11 October, Nanjing sold one residential-use plot to Nanjing Public Utilities Development for RMB 1.323 bn, at an accommodation value of RMB 34,083/sqm and a premium of 0.30%.

Chengdu: Yixin sub-district plot in Shuangliu sells at reserve price for RMB 674 m

On 30 September, Chengdu sold a residential plot in Yixin Sub-district, Shuangliu District for RMB 674 m. Located in Groups 6 and 8 of Shuangtang Community, Yixin Sub-district, the residential-use plot has a site area of 25,692.31 sqm, planned GFA of 64,230 sqm and a plot ratio of 2.5. It was acquired at reserve price by Chongqing Yinhe & Konggang Xingcheng.

Chongqing: Bangtai takes a Liangjiang New Area residential plot at reserve price for RMB 933 m, accommodation value RMB 8,200/sqm

On 29 September, Chongqing sold a residential plot in Liangjiang New Area to Bangtai at an accommodation value of RMB 8,200/sqm (reserve price), for a total consideration of RMB 933 m.

Nanchang: land market heats up as two Xihu District plots both clear at premiums, top premium 42.65%

On 29 September, Nanchang sold two residential plots in Xihu District, both at premiums, for total proceeds of RMB 443 m, with Poly Developments and Sichuan Bangtai each securing one. The plot south of Jinhuan Road in Xihu District went to Jiangxi Bangyu Real Estate (Sichuan Bangtai Group) at RMB 13.9468 m per mu, for a total consideration of RMB 318.57 m, an accommodation value of RMB 9,509/sqm and a premium of 42.65%.

Project Watch

Suzhou and Wuxi: Ascott's "Adoor Suites" opens two properties in succession, accelerating its quality living rollout

Ascott China's Adoor Suites - a living solutions brand created for China's urban mainstream - has opened Adoor Suites Chengyang in Suzhou and Adoor Suites Xishan in Wuxi in quick succession. The opening ceremony for Adoor Suites Chengyang in Suzhou was held on 26 September. The project is the first fruit of the partnership between Ascott and Jingkai Guokong Group (the state holding group of Suzhou's Xiangcheng Economic Development Zone), and Ascott's first project in Xiangcheng District. Adoor Suites Xishan in Wuxi opened on 28 September - the first collaboration between Ascott and Xizhou Holdings Group and the brand's debut in Wuxi.

Corporate Watch

Ping An acquires Dongguan Jingchang Logistics outright, taking cumulative logistics real estate deal value above RMB 2 bn

Ping An has completed the full acquisition of Dongguan Jingchang Logistics Co., Ltd., with former shareholder Guanyao (China) Ltd exiting entirely. Established in 2012, the logistics company's core business spans warehousing services and warehouse leasing, and it now joins Ping An Life's logistics asset portfolio. This is not Ping An's first move into logistics, and its strategic build-out in logistics real estate continues to deepen. In recent years, Ping An Life has acquired equity stakes in three logistics parks in Jiangmen (Heshan and Pengjiang) in Guangdong and the Xi'an Airport Zone in Shaanxi, with aggregate deal value exceeding RMB 2 bn.

China Orient Asset Management: Shenzhen Wongtee Plaza changes hands via debt settlement at an RMB 3.053 bn opening price

On 8 October, Wongtee International announced details of the debt-for-asset settlement involving its Crystal Island Guoshang Shopping Centre (i.e. Shenzhen Wongtee Plaza) and its impact on the company. Per the announcement, Shenzhen Wongtee Plaza and related ancillary facilities and equipment held by Wongtee International's wholly owned subsidiary Shenzhen Rongfa Investment Co., Ltd. were judicially ruled to settle the relevant debts at the first online auction's opening price of RMB 3,052,966,000. Guangyao Xialan (Shenzhen) Investment Co., Ltd. is the creditor of Rongfa Investment's debts; an equity look-through shows its principal shareholder is China Orient Asset Management (China) Co., Ltd. Wongtee Plaza, the "diamond heart" of Shenzhen's CBD, houses flagship stores of high-end and mid-market international brands. The project covers a site of c. 42,300 sqm with GFA of c. 104,000 sqm, a genuinely world-class shopping centre.

Blackstone and Starwood Capital to issue USD 1.94 bn CMBS for their extended-stay platform

Market sources report that Blackstone and Starwood Capital Group plan to refinance nearly USD 2 bn of hotel debt through the public markets. ESH Hospitality - jointly held by the two investment giants and operator of the Extended Stay America brand - plans to issue USD 1.94 bn of commercial mortgage-backed securities (CMBS), with the financing covering existing debt across 220 properties in 33 US states.

Yango's Shanghai headquarters building sells at judicial auction for RMB 1.31 bn, or RMB 27,438/sqm

On 28 September, Tower 1 of Binjiang International Plaza in Yangpu District, Shanghai (formerly "Yango Holdings Tower") was auctioned on Taobao with an opening price of RMB 1.13 bn and bid increments of RMB 5 m. As at 29 September, three bidders had registered, and after 37 rounds of competitive bidding the asset sold for RMB 1.31 bn, equating to RMB 27,438/sqm on a GFA basis. Tower 1 of Binjiang International Plaza served as Yango Group's headquarters and sits at the far end of Yangpu's riverside belt. In 2017, Yango Group and its parent Yango Holdings relocated their headquarters here, at a time when Yango Holdings had entered the Fortune Global 500 for the first time on annual revenue of USD 23.67 bn.

Warburg Pincus acquires a site in Yongin, South Korea for an 80 MW hyperscale data centre

Global alternative asset manager Warburg Pincus announced that, together with Korean data centre developer DC Connects and Seoul-based asset manager Wide Creek AMC, it has acquired a greenfield site in Yongin, South Korea, to develop an 80 MW hyperscale data centre. The facility covers a site of nearly 58,000 sqm in a strategically significant location adjacent to Gangnam and Pangyo - known as "Korea's Silicon Valley" - home to numerous large technology companies with strong demand for hyperscale data centres.

CapitaLand: first foreign-sponsored consumption REIT, the ChinaAMC CapitaLand Commercial REIT, lists with a targeted raise of RMB 2.287 bn

On 29 September 2025, the first foreign-sponsored consumption REIT in China - the ChinaAMC CapitaLand Commercial REIT (fund code 508091), sponsored by CapitaLand Investment - listed successfully on the Shanghai Stock Exchange. It is China's 75th public REIT and a benchmark case for the internationalisation, diversification and professionalisation of the country's public REITs market. The offering drew broad attention and strong market endorsement: the fund targeted a raise of RMB 2.2872 bn, with cumulative subscription funds before pro-rata allocation exceeding RMB 309.17 bn, and effective subscription multiples of 535.2x for public investors and 252.6x for offline investors.

Alibaba in talks to buy the top 13 floors of One Causeway Bay in Hong Kong for c. HKD 7 bn

On 30 September, the Hong Kong Economic Times, citing an unnamed source, reported that technology giant Alibaba is in talks to acquire the top 13 floors of One Causeway Bay in Causeway Bay at a transaction value of c. HKD 7 bn; the building is currently held by Mandarin Oriental Hotel Group. Public records indicate Alibaba and its affiliates currently lease 10 floors at Times Square in Causeway Bay, with the lease expiring in 2028. One Causeway Bay, at 281 Gloucester Road, Causeway Bay, Hong Kong, rises 31 storeys to a total height of 143.62 m and was developed by Mandarin Oriental Hotel Group.

China Overseas: ChinaAMC China Overseas Commercial REIT draws a record 374.72x offline subscription multiple

ChinaAMC announced that the ChinaAMC China Overseas Commercial REIT (fund code 180607) would be offered from 13 to 14 October 2025 at RMB 5.281 per unit, targeting total proceeds of RMB 1.5843 bn, of which 27 m units are offered to the public. During offline bookbuilding, indicated subscriptions totalled 23.6074 bn units, 374.72x the initial offline offering size of 63 m units - a market record that underlines professional investors' recognition of the project's investment value. The REIT's seed asset, Foshan Yingyuehu Universal Park, is a benchmark self-held property of China Overseas in the mature operating stage. Located in the pilot zone of the state-level reform platform "Guangzhou-Foshan High-Quality Development Integration Pilot Zone" (Yingyuehu area) at the Guangzhou-Foshan core of the Greater Bay Area, it enjoys a strong location and is a leading large shopping centre in its catchment, combining accessibility with scarcity value.

Keppel: Keppel REIT acquires 75% of Sydney's Top Ryde City shopping centre for AUD 393.8 m

Market sources report that Singapore's Keppel REIT has announced completion, on 8 October, of the acquisition of a 75% stake in the Top Ryde City shopping centre in Sydney's north-western suburbs for AUD 393.8 m (c. RMB 1.85 bn). The seller is US investment firm Blackstone; the remaining 25% continues to be held by ASX-listed MA Financial. The freehold complex has 77,000 sqm of lettable area and 2,739 car parking spaces, annual sales of AUD 488 m and occupancy of 96%, with anchor tenants including ALDI, Big W, Coles, Kmart and Woolworths and a weighted average lease expiry of 4.2-4.8 years. Keppel REIT raised SGD 113 m through a private placement of 112.5 m new units to fund part of the consideration.

Market Data

Shanghai: September secondary-home registrations reach 20,389 units, up c. 3% MoM and nearly 30% YoY

Shanghai recorded 20,389 secondary-home transactions in September, again breaking the 20,000 mark, up c. 3% from August and up nearly 30% YoY - the first month in H2 2025 with registrations above 20,000 units. In the month since Shanghai's new property policies of 25 August, the city's secondary market has seen four trading days with single-day registrations above 1,000 units. Overall, the "Shanghai Six Measures" of 25 August relaxed purchase restrictions outside the Outer Ring Road, directly activating that market.

Overseas Watch

Hong Kong: prices and volumes both rise, with c. 57,000 transactions in the first three quarters, up 17.3% YoY to a four-year high

Hong Kong's primary market has remained buoyant, with monthly primary residential transactions exceeding 1,000 cases for eight consecutive months. According to Midland Realty's research centre, drawing on the Sales of First-hand Residential Properties Electronic Platform and market sources, primary transactions have held at high levels from February to September this year, surpassing the seven-month streak above 1,000 cases from May to November 2021 and marking the longest such run since the March-November 2019 period. In September, registrations across all Hong Kong property types (including residential, car parks, and industrial, office and retail premises) approached 6,870 cases worth HKD 50 bn, up c. 6.3% MoM and up a substantial 78.8% YoY. Cumulative transactions in the first three quarters totalled c. 57,000 cases, up 17.3% YoY and a four-year high.