GRA Market Weekly (2025-12-19)

Policy Watch

MOHURD Minister Ni Hong writes in People's Daily on advancing high-quality real estate development

On 16 December, People's Daily (page 13) published a bylined article by Ni Hong, Party Secretary and Minister of Housing and Urban-Rural Development, titled "Promoting High-Quality Real Estate Development", systematically setting out the core logic, overall requirements and key tasks.

The article establishes the necessity of high-quality development from three "objective needs"; builds a pathway framework around anchoring the main goals, balancing five key relationships including long-term versus short-term, strengthening four supports including the legal framework, and improving multi-party coordination mechanisms; and details six "key tasks" for implementation, shifting real estate from scale expansion to quality and efficiency. On policy, the future approach balances short-term measures with long-term institution building: near term, implementing announced policies to consolidate the market's stabilisation, while the six key tasks lean towards optimising supply, raising quality and institutional reform.

Market Watch

Nanjing: residential land price hits a record high

On 19 December, Nanjing (municipal level) offered ten residential-use plots with combined land area of 311,200 sqm, planned GFA of 476,100 sqm and a combined starting price of RMB 6.983 bn. All plots transacted, for total proceeds of RMB 7.319 bn.

The hottest plot was a residential site in the Aonan area: land area 22,214.65 sqm, planned GFA 35,543.44 sqm, plot ratio 1.60, starting price RMB 1.275 bn (floor price RMB 35,872/sqm). After 61 rounds of bidding, Nanjing Aoti Construction Development won at RMB 1.611 bn - a floor price of RMB 45,325/sqm and a 26.35% premium, setting a new record floor price for residential-use land in Nanjing.

Guangzhou: land auctions raise RMB 8.71 bn

On 18 December, the Baiyun New Town plot in Baiyun District - residential use, land area 22,870 sqm, planned GFA 52,601 sqm, residential plot ratio 2.3, starting price RMB 1.683 bn (floor price RMB 32,000/sqm) - drew two bidders. After 31 rounds, Guangzhou Suitai Real Estate Co. (Poly Developments) won at RMB 1.983 bn - a floor price of RMB 37,703/sqm and a 17.82% premium.

On 15 December, Guangzhou offered four residential-use plots - one in Tianhe, two in Nansha and one in Huangpu - with combined land area of 246,900 sqm, planned GFA of 375,000 sqm and a combined starting price of RMB 6.727 bn. All four plots sold, raising RMB 6.727 bn.

Beijing: land auctions raise RMB 1.354 bn

On 16 December, Beijing held its first land auction of December: plot FT00-0204-6028, R2 second-class residential land within the Zhangguozhuang Village Area A shantytown-redevelopment land development project in Beigong Town, Fengtai District - site area 31,836.2 sqm, planned GFA 47,754 sqm, plot ratio 1.5, height limit 24 m (30 m in parts), starting price RMB 1.354 bn (floor price RMB 28,354/sqm). A consortium of CSCEC Fangcheng Investment & Development Group and CSCEC Zhidi Real Estate won at RMB 1.354 bn - a floor price of RMB 28,354/sqm and a 0% premium.

Chengdu: land auctions raise RMB 1.339 bn

On 16 December, Chengdu offered three residential-use plots, in Jinjiang District, the Eastern New Area and Xinjin District, with combined land area of 86,700 sqm, planned GFA of 154,000 sqm and a combined starting price of RMB 1.289 bn. All three plots sold, raising RMB 1.339 bn. The Jinjiang plot drew on-site bidding from Jinmao, Xinlüse Real Estate, Yutai, Jinjiang Tongjian and other developers, with Chengdu Zhanchen Real Estate Co. (Yutai) winning at a floor price of RMB 21,500/sqm - a total of RMB 904 m and a 5.91% premium.

Project Watch

Chengdu: the Rongshan Chengjia Mingyue Tianchen subsidised rental project opens rolling leasing

Recently, the Rongshan Chengjia Mingyue Tianchen subsidised rental housing project began rolling allocation. It offers over 100 furnished subsidised rental units - 70 sqm one-bedroom layouts throughout, all in a natural-wood design style. The project sits at a transport node, a 15-minute walk from Baicao Road Station on Metro Line 2, surrounded by a dense web of bus routes. As the first subsidised rental project in Jinniu District under Chengdu Communications Investment Group's "Rongshan Chengjia" brand, it carries the SOE's commitment to urban living quality and injects fresh vitality into Jinniu's subsidised rental market.

Corporate Watch

Warburg Pincus in talks for a c. RMB 6.7 bn Hong Kong acquisition

On 17 December, capital-markets sources reported that US private equity firm Warburg Pincus is in advanced negotiations with Hong Kong corporate services provider Acclime, planning an acquisition at a consideration of at least USD 950 m (RMB 6.7 bn). The two sides have reportedly agreed core terms, with signing expected shortly.

Vanke pledges its asset management platform Wanzhang Capital

On 16 December, market sources reported that on 11 December Vanke pledged its RMB 50 m capital contribution in Wanzhang Capital (representing 100% of the equity) to Shenzhen Metro Group. Wanzhang Capital is the asset management platform Vanke established in 2015 to pursue acquisition and repositioning of existing urban assets. Its Hong Kong affiliate V Capital co-acquired core Shanghai properties such as Corporate Avenue 3 and Central Plaza, with the ambition of building a Blackstone-style diversified asset manager. In December 2025, Vanke pledged 100% of Wanzhang Capital to major shareholder Shenzhen Metro as one of the security measures for the RMB 22 bn shareholder loan. The platform led the repositioning of Shanghai's Central Plaza, which posted a net profit of RMB 44.35 m in 2023, but as Vanke's liquidity pressure intensifies its assets are progressively being used to secure debt.

Notably, the Wanzhang Capital pledge is not an isolated event: over the past month, Vanke has completed three 100% equity pledges to Shenzhen Metro.

Brookfield buys an ESR logistics portfolio for RMB 1.85 bn

On 15 December, market sources reported that Canada-headquartered asset manager Brookfield is acquiring eight Singapore logistics assets from ESR-REIT for a total of SGD 338.1 m (RMB 1.85 bn).

ESR-REIT (9A4U), listed on the Singapore Exchange, focuses on logistics real estate. It is selling eight non-core industrial-logistics projects in Singapore for SGD 338.1 m to optimise its portfolio and reduce leverage. Parent ESR Group, Asia's leading logistics real estate operator, is recalibrating its strategy after completing its privatisation in 2025, while also launching products such as the AVIC-ESR warehousing logistics REIT in China. The sale improves ESR-REIT's financial flexibility, and the 2% premium to book signals market recognition of asset quality.

Wanda sells its stake in 99Bill

Recently, 99Bill Financial Services (Shanghai) underwent a business-registration change: Wanda's Shanghai Wanda Internet Financial Services exited the shareholder register, having held 30%. Meanwhile, Shanghai Ruyi Xingchen Enterprise Management raised its stake from 10% to 40%, becoming one of 99Bill's key shareholders.

Per public records, 99Bill Financial Services (Shanghai) was founded in September 2011, with Zhang Yi as legal representative and registered capital of c. RMB 480 m, covering financial information services, financial outsourcing, investment management and advisory. Following the change, 99Bill is jointly held by Shanghai Ruyi Xingchen Enterprise Management, Jin Yinfeng, Du Minfeng and others.

Boyu signs the Xiaomi Wuhan youth apartments

Recently, Xiaomi Group and Vanke's rental brand Boyu reached a new agreement, formally entrusting the Xiaomi youth apartments in Wuhan to Boyu for full life-cycle operation and management. The partnership deepens and extends the two companies' cooperation in employee housing services following the successful operation of the Beijing Xiaomi youth apartments.

The Xiaomi Wuhan youth apartments, located in the East Lake High-Tech Development Zone, Wuhan, Hubei, provide 990 units. Boyu will apply its proven Beijing playbook, providing Xiaomi with a bespoke service programme across technology systems, service management and community operations - safeguarding the employee living experience while lifting the asset's operating efficiency.

70-city home prices, November 2025

On 15 December, the National Bureau of Statistics released data on commodity residential sales prices for November 2025. Across the 70 large and medium-sized cities, prices broadly fell MoM, with YoY declines widening. MoM, tier-1 new home prices fell 0.4%, widening 0.1 ppt from the prior month - Shanghai rose 0.1%, while Beijing, Guangzhou and Shenzhen fell 0.5%, 0.5% and 0.9% respectively. Tier-1 secondary home prices fell 1.1% MoM, widening 0.2 ppt - Beijing, Shanghai, Guangzhou and Shenzhen fell 1.3%, 0.8%, 1.2% and 1.0% respectively. YoY, tier-1 new home prices fell 1.2%, widening 0.4 ppt - Shanghai rose 5.1%, while Beijing, Guangzhou and Shenzhen fell 2.1%, 4.3% and 3.7% respectively. Tier-1 secondary home prices fell 5.8% YoY, widening 1.4 ppt - Beijing, Shanghai, Guangzhou and Shenzhen fell 6.8%, 4.6%, 7.2% and 4.8% respectively.