GRA Market Weekly (2025-12-05)

Policy Watch

The central government again stresses "stabilising the housing market"

On 3 December, the State Council held its 17th thematic study session on "advancing people-centred new urbanisation and building a new pattern of urban-rural integrated development". Premier Li Qiang said urban renewal should be implemented in depth, combining it with the elimination of safety hazards and the stabilisation of the housing market, and solidly advancing "good home" construction and high-quality real estate development.

NDRC issues the 2025 sector scope list for infrastructure REITs

On 1 December, the General Office of the National Development and Reform Commission formally issued the Notice on the Sector Scope List for Infrastructure REITs Projects (2025 Edition). Newly included are commercial office facilities - premium Grade A and Grade A office tower projects in mega- and super-large cities - and urban renewal facilities, covering renovation projects for aging blocks and old industrial plants, as well as comprehensive urban renewal facility projects spanning multiple such asset types.

Shanghai's Changning District issues a new version of its measures for negotiated housing exchange

On 1 December, the Changning District government issued the Changning District Implementation Measures for Negotiated Housing Exchange. Implementing entities must organise surveys and registration of the ownership, location, use and floor area of housing within a negotiated-exchange project area, with results published to homeowners and public-housing tenants within the project scope. Implementing entities, together with the relevant administrative departments, will investigate, determine and handle unregistered buildings within the project area according to law: buildings determined to be lawful, and temporary structures within their approved period, are to be compensated; unlawful buildings and temporary structures beyond their approved period are not.

The new rules take effect from 1 January 2026 through 31 December 2030; projects already announced follow the previous rules.

Market Watch

Guangzhou: Poly Developments wins the Nantai Road plot in Haizhu for RMB 3.5 bn at a 27%+ premium

On 5 December, the Nantai Road plot in Haizhu District - zoned residential with compatible commercial and primary/secondary school use, site area 42,208 sqm, planned GFA 143,507 sqm, plot ratio 3.4, starting price RMB 2.75 bn (floor price RMB 19,163/sqm) - was won after 76 rounds of bidding by Guangzhou Bangjie Real Estate Co. (Poly Developments) at RMB 3.5 bn, a floor price of RMB 24,389/sqm and a 27.27% premium.

Wuhan: land auctions raise RMB 888 m, with a new private developer taking two Jinyintan plots at premiums

On 2 December, Wuhan offered three residential-use plots - two in Dongxihu District and one in Xinzhou District - with combined site area of 113,900 sqm, planned GFA of 234,900 sqm and a combined starting price of RMB 856 m. The two Dongxihu plots went to Wuhan Dingyuan Real Estate Development at premiums, while the Xinzhou plot sold at reserve price, for total proceeds of RMB 888 m.

Project Watch

Hangzhou: C&D's "Shengguangli" apartments open

On 29 November, "Shengguangli", the long-term rental apartment brand of C&D Real Estate's Yuanshengheng unit, opened its first Hangzhou store - the Hangzhou Manyun store. A rental project with state-owned enterprise backing, Shengguangli is built around the concept that "life is inherently bright", with "genuinely move-in-ready living" as its core selling point, delivering on everything from spatial design to amenity details to spare young renters the hassles of furnishing and settling in, and redefining the rental experience in Hangzhou. The project offers four layouts, including 40-42 sqm one-bedroom-with-living-room and studio units, blending the relaxed yet refined lifestyle of urban youth, with detail-rich spaces designed as an ideal home for interaction and community.

Shanghai: Binjiang Vanke Center offered for sale at RMB 2 bn

Recently, the Binjiang Vanke Center on Lujiazui's prime east riverfront was put on the market at RMB 2 bn, structured as a share deal. The Grade A office property at 118 Minsheng Road, Pudong, developed by Vanke, has a total GFA of c. 54,000 sqm - 30,000 sqm of office and 24,000 sqm of retail. The 29-storey landmark was acquired outright by Onewo in 2025 and is now serviced by Vanke Property at a premium standard of RMB 31/sqm/month. Core strengths include direct access to Metro Lines 14 and 18, 1.4 km of riverfront views, market rents of RMB 6-7/sqm/day, and flexibly divisible office space (from 160 sqm).

Shanghai: Kimpton Qiantan hotel offered for sale at RMB 1.384 bn

Recently, the Kimpton Qiantan hotel in the core Qiantan area was put on the market at RMB 1.384 bn. Kimpton Qiantan is a five-star hotel under IHG's Kimpton brand, positioned around design and personalised service. The hotel has a GFA of c. 23,064 sqm and 143 rooms, with features including a rooftop heated infinity pool, French restaurant Le Chloé and bar Le Salon Chloé. The building was designed by KPF, with interiors blending Parisian and Shanghainese elements in a modern understated-luxury style. Adjacent to Taikoo Li Qiantan and surrounded by financial corporate headquarters, it serves both business and leisure demand.

Corporate Watch

Fulong Zhidi Fund acquires a rental housing project in Suzhou

Fulong Zhidi Fund recently announced the successful acquisition of a rental housing project in the Jinji Lake business district of Suzhou Industrial Park. Located in the park's core, the project has a total GFA of over 47,000 sqm and will be converted into the "Lejing Jinji Lake Living Community" with c. 1,190 rooms and a supporting retail street, accommodating over 1,500 people as a large corporate-accommodation community serving the park.

The acquired asset is the Suzhou Lianjian Apartments at 805 Fengting Avenue, Suzhou Industrial Park, with a GFA of 47,147 sqm comprising five titled dormitory buildings and one ancillary building.

Hillhouse platform to acquire a student housing operator

On 1 December, Samty Holdings - controlled by Rava Partners, Hillhouse's Japan real estate investment platform - announced plans to acquire a majority stake in UniLodge, Australia's largest student accommodation operator, for c. AUD 600 m (RMB 2.88 bn), subject to regulatory approval. UniLodge is the largest student accommodation operator in Australia and New Zealand, managing over 45,000 beds under an asset-light model serving universities and institutional investors. Its apartments typically offer multiple room types (singles, shared units) priced from c. AUD 265 per week including utilities and internet, mostly on 52-week leases, with shared kitchens and laundries, and activity rooms and gyms at some locations.

New World reportedly weighing a sale of part of Rosewood Hotel Group

Recently, New World Development was reported to be considering selling part of Rosewood Hotel Group and to have approached potential buyers, with discussions at a preliminary stage and subject to change. Documents from New World's earlier debt-swap proposal valued the hotel business at HKD 15.9 bn. The Rosewood brand currently operates 58 properties worldwide, with a portfolio spanning multiple core markets.

CR Land transfers two "MixC" assets for RMB 2.08 bn

Recently, subsidiaries of China Resources Land publicly listed for transfer 100% of the equity in CR Land (Xi'an) Commercial Property Management and 100% of CR Land (Guiyang) Co. Both transfers have been approved by China Resources Land Limited, with consideration payable in a lump sum.

Transaction 1: 100% of CR Land (Xi'an) Commercial Property Management, transferred by Golden West Development; the target's core asset is the Xixian MixC. Transfer price: RMB 970.28 m.

Transaction 2: 100% of CR Land (Guiyang) Co., transferred by Hainan China Resources Shimei Bay Tourism Development; the target's main asset is the Guiyang MixC One. Transfer price: RMB 1,107.62 m.

ESR weighs selling billions of dollars of mainland assets

Recently, ESR Group - backed by Warburg Pincus and recently privatised in a USD 7 bn buyout - is evaluating the sale of part of its China assets, with media reporting that Asia's largest logistics real estate operator is redirecting capital to other Asia-Pacific markets. ESR reportedly plans to hire advisers to assess sale options, with a potential deal size running into billions of dollars. Despite the possible disposals, ESR remains interested in the mainland and continues to explore new growth and investment opportunities.

Vanke pledges Onewo

Recently, Onewo Space-Tech Service Co. disclosed that controlling shareholder Vanke has pledged 15.3211 m Onewo shares it holds (representing 57.16% of voting rights) to Shenzhen Metro Group as security for a RMB 22 bn loan. This is Vanke's third financing from Shenzhen Metro within a month, bringing cumulative borrowings to RMB 30.796 bn. The pledged Onewo stake counts among Vanke's most valuable "cash cows".

Jinmao mortgages the Jin Mao Tower for a c. RMB 10 bn refinancing of its CMBS

China Jinmao recently completed a major financing: using its flagship Shanghai Jin Mao Tower as collateral, it secured a RMB 9.9 bn syndicated loan from seven large state-owned banks to refinance its previously issued c. RMB 10 bn carbon-neutral CMBS. The debt swap lowers funding costs while underscoring the "ballast" role of prime real estate in developer financing.

Vanke issues a flurry of announcements

On the evening of 5 December, Vanke disclosed the proposal summary for the first 2025 holders' meeting of its 2022 fourth-tranche MTNs. There are three proposals: adjusting the principal and interest repayment arrangements (special resolution); adding credit enhancements acceptable to investors and conditionally adjusting the repayment arrangements (special resolution); and adjusting the repayment arrangements while adding credit enhancements (special resolution).

Under the first proposal, the notes' principal repayment would be extended by 12 months to 15 December 2026, with the full principal repaid on that date. The second proposal adds investor-acceptable credit enhancements for the principal and extension interest, including but not limited to a full irrevocable joint-and-several guarantee from Shenzhen Metro Group or other Shenzhen SOEs acceptable to investors, or other pledge/mortgage measures. The third proposal extends the principal repayment by 12 months to 15 December 2026, with the full principal repaid then; interest unpaid before the extension must be paid on the original interest date of 15 December 2025; the coupon stays at 3% during the extension; interest accrued during the extension is paid together with the principal; and the extension must be accompanied by corresponding credit enhancements.

In addition, Vanke plans to convene a holders' meeting for its 2022 fifth-tranche MTNs ("22 Vanke MTN005") to discuss an extension and steadily advance repayment. The notes have RMB 3.7 bn outstanding, a 3% coupon for the current interest period and a principal maturity of 28 December 2025. The meeting, convened by Bank of Communications, will be held on 22 December 2025.

Shenzhen Bay's Yunxi sets this year's national record for launch-day sales

On 30 November, the Yunxi project at Shenzhen Bay recorded RMB 13 bn of sales on launch day, a 2025 national record for a single project's opening.

Jointly developed by China Resources Land and China Overseas, the project occupies a core site in Shenzhen's Houhai headquarters base - the area's only pure residential land in nearly 12 years. The plot was acquired in 2024 for RMB 18.512 bn at a floor price of RMB 70,300/sqm, positioned as high-end luxury housing.

The first release comprised 348 homes of 209-1,150 sqm at an average price of c. RMB 180,000/sqm. Flat units above 500 sqm sold out quickly, with a top unit price of RMB 350,000/sqm (c. RMB 377 m total); overall sell-through was near 70%.

The against-the-cycle sell-out confirms the resilience of top-end luxury in core cities, injects confidence into the Shenzhen market and highlights the pull of "scarce assets" for high-net-worth buyers.

Shanghai secondary-home transactions top 22,900 units in November 2025

In 2025, Shanghai's monthly secondary-home transactions peaked in March at 29,000 units, still partly buoyed by the September 2024 "Seven Shanghai Measures". Volumes then eased month by month until a new round of policy on 25 August lifted the market briefly, with September back above 20,000 units. October slipped to 18,000 units on the long holiday. November rebounded to 22,943 units - the third-highest monthly tally this year.