GRA Market Weekly (2025-12-26)

Policy Watch

PBoC: December LPR unchanged, holding steady for a seventh consecutive month

On 22 December, the People's Bank of China published the December loan prime rate (LPR): the one-year LPR at 3.0% and the over-five-year LPR at 3.5%, both unchanged from the prior month. The LPR has now held steady for seven consecutive months.

National Housing and Urban-Rural Development Work Conference: four priorities for 2026

The National Housing and Urban-Rural Development Work Conference was held in Beijing on 22-23 December. The conference set out four areas of focus for 2026.

Advancing modern people-centred cities, with a focus on: high-quality urban renewal, preparing and implementing the 15th Five-Year Plan special programme for urban renewal, delivering city health checks and renewal pilots, and implementing a batch of livelihood, development and safety projects
Stabilising the property market, with a focus on: city-specific policies to control new supply, reduce inventory and improve the supply mix; revitalising existing land in conjunction with urban renewal and urban-village redevelopment; and promoting the acquisition of existing commodity homes for use as affordable housing, resettlement housing, dormitories and talent housing
Accelerating quality upgrades in construction, with a focus on: industrial transformation and upgrading, and vigorous development of intelligent and green construction
Strengthening the foundations for high-quality development, with a focus on: improving rule-of-law capacity, refining the standards system, and accelerating the release of urgently needed engineering and construction standards

On 24 December, the Beijing Municipal Commission of Housing and Urban-Rural Development and three other departments jointly issued the Notice on Further Optimising and Adjusting the City's Real Estate Policies. Key contents:

Eased purchase eligibility for non-Beijing-registered households: the social-insurance contribution requirement for buying commodity housing inside the Fifth Ring Road is cut from three years to two; for housing outside the Fifth Ring Road, from two years to one
Households with two or more children (both Beijing-registered and non-registered) may buy one additional commodity home inside the Fifth Ring Road on top of existing purchase-restriction entitlements
Mortgage rate pricing will no longer distinguish between first and second homes
The minimum down payment for a housing provident fund loan on a second home is cut from no less than 30% to no less than 25%
For development projects on land acquired through public tender, auction or listing (including commodity housing, hotels and offices), project initiation moves from tiered municipal-district approval to district-level filing

The notice takes effect from 24 December 2025.

Market Watch

Beijing: 2025 land sales close with a Fengtai Huaxiang plot at RMB 2.472 bn and a Haidian Shangdi plot at RMB 8.456 bn

On 25 December, Beijing offered a residential plot in Huaxiang, Fengtai District: site area 23,542.66 sqm, planned GFA 58,857 sqm, starting price RMB 2.472 bn (accommodation value RMB 42,000/sqm). A consortium of Beijing Construction Engineering Real Estate Co., Ltd. and Beijing Chengxiang Housing Construction and Development Co., Ltd. won the plot at RMB 2.472 bn - an accommodation value of RMB 42,000/sqm and a 0% premium.

On 23 December, Beijing held a heavyweight auction for the Shangdi 0702 block in Haidian District. The plot had already drawn bids from Haikai Holdings and Beijing Construction Engineering before the auction; after several rounds of offline bidding, Beijing Huada Jiye Real Estate Development Co., Ltd. (Haikai Holdings) won at RMB 8.456 bn - a blended accommodation value of RMB 37,517/sqm and a 0.40% premium.

Hangzhou: 2025 land sales close with 92 residential-use plots across the ten districts for RMB 142.08 bn

On 23 December, Hangzhou offered a residential plot in Fuyang District: site area 39,239 sqm, planned GFA 47,086.8 sqm, plot ratio 1.2, height limit 27 m, starting price RMB 287 m (accommodation value RMB 6,095/sqm). Zhejiang Longda Real Estate Co., Ltd. won the plot at RMB 292 m - an accommodation value of RMB 6,201/sqm and a 1.74% premium.

With this auction, Hangzhou's ten districts sold 92 residential-use plots in 2025 for a total of RMB 142.08 bn, far ahead of 2024 on both count and value (72 plots for RMB 116.9 bn in 2024). Overall, Hangzhou's land market continues to trade on its own trajectory, ranking among the highest nationally by transaction value and demonstrating enduring resilience in city value.

Guangzhou: 2025 land sales close with Yuexiu taking a Haizhu residential plot at reserve for RMB 1.436 bn

On 21 December, Guangzhou held its final land auction of 2025 for plot AH050335 in Haizhu District, zoned residential: site area 12,071.3 sqm, planned GFA 42,248.5 sqm, plot ratio 3.5, starting price RMB 1.436 bn (accommodation value RMB 34,000/sqm). Guangzhou Yuehong Real Estate Development Co., Ltd. (Yuexiu) won the plot at RMB 1.436 bn - an accommodation value of RMB 34,000/sqm, with no premium.

Project Watch

Beijing: Universal Studios long-term rental apartment project breaks ground with 61,000 sqm of GFA across three buildings

On 23 December, China Construction Sixth Engineering Bureau (CSCEC Silk Road) held the groundbreaking ceremony for the Beijing Universal Studios long-term rental apartment project. Located in Tongzhou District, Beijing, the project has total GFA of 61,000 sqm across three long-term rental apartment buildings, which will be included in Tongzhou District's affordable housing stock on completion.

Sanya: China Jinmao sells the Ritz-Carlton Sanya for RMB 2.265 bn

On 23 December, China Jinmao announced that its indirect wholly owned subsidiary Shanghai Jinmao and Sanya Luanmao had signed a property rights transfer contract on 23 December 2025, agreeing to sell 100% of the equity in Sanya Lüye for RMB 2.2646 bn. The underlying asset is the Ritz-Carlton Sanya in Sanya, Hainan Province. Sanya Lüye is the project company for the hotel; on completion, China Jinmao will no longer hold the asset. China Jinmao said the disposal will help optimise its asset structure and improve capital efficiency.

The Ritz-Carlton Sanya Yalong Bay opened in 2008 with 446 rooms and suites, including 51 executive rooms and suites, a dedicated 450 sqm executive lounge and 33 private villas - one of the earlier luxury resorts established by the Ritz-Carlton brand in China.

Hangzhou: Binjiang Powerlong City changes hands for RMB 1 bn

On 23 December, Powerlong Real Estate Holdings announced a very substantial disposal. Powerlong disclosed that on 23 December 2025 the group entered into a cooperation agreement with Lianshang Yihao, Lishui Lianjia and Tianjin Yuanjian, under the terms and conditions of which Shanghai Ruilong (an indirect wholly owned subsidiary) has conditionally agreed to sell, and Lianshang Yihao (an entity wholly owned by independent third parties Lishui Lianjia and Tianjin Yuanjian) has conditionally agreed to buy, 100% of the equity in the target company Hangzhou Huazhan Real Estate Development Co., Ltd. (which owns 100% of the target project). On completion of the equity transfer, the target company will cease to be a subsidiary of the company.

The target project is a mixed-use commercial complex developed by the group at 3867 Binsheng Road, Puyan Sub-district, Hangzhou, Zhejiang Province, comprising the Hangzhou Binjiang Powerlong City mall complex and the Hangzhou Binjiang Powerlong Yijun Hotel. The preliminary consideration for the target equity is RMB 1 bn.

Hong Kong: Swire Properties sells two houses at 6 Deep Water Bay Drive for HKD 2.2 bn, at HKD 147,000 per sq ft

Swire Properties recently announced the sale of two detached houses at its ultra-luxury project "6 Deep Water Bay Drive" for HKD 2.2 bn, at an average of HKD 147,000 per sq ft - among the highest transaction prices in Hong Kong's luxury market in recent years.

Developed by Swire Properties, 6 Deep Water Bay Drive comprises two detached villas with saleable areas of 9,630 sq ft (c. 892 sqm) and 5,340 sq ft (c. 493 sqm), sold for a total of HKD 2.2 bn, equivalent to HKD 147,000 per sq ft (c. RMB 1.59 m/sqm). Located in the traditional luxury enclave of Deep Water Bay with sea views, the houses feature private pools, glass curtain walls and premium amenities. Launched in Q3 2025, they sold quickly, with completion expected in Q1 2026. The buyer's identity has not been disclosed; the market speculates a mainland high-net-worth individual. The transaction sets a record unit price for Hong Kong luxury homes in recent years, underscoring the appeal of scarce assets in core locations.

Shenzhen: Fortior Technology to buy Building 1 of Runrong Tower (Phase II) for RMB 710 m

On 25 December, Fortior Technology announced that, in line with its strategic development plan and business needs, it intends to purchase from Shenzhen Qianhai Shekou Tusincere Industrial Co., Ltd. the commodity property Building 1 of Runrong Tower (Phase II), built on plot T102-0482, Block 02, Mawan Unit 15, Qianhai Shenzhen-Hong Kong Cooperation Zone, Nanshan District, Shenzhen. It will serve as the company's R&D and office building and support business development, meeting the needs of the company's expansion while reserving ample R&D and office space for continued talent recruitment and strategic growth.

The announcement disclosed that the target property has GFA of 25,204.97 sqm, with an agreed total price of RMB 709,731,278 - c. RMB 28,000/sqm. Delivery is expected by 31 December 2027. Fortior Technology said the purchase will be funded from its own resources, and emphasised that no formal sale and purchase contract has yet been signed, so there remains some uncertainty as to whether the transaction will ultimately complete.

Corporate Watch

KKR and PAG: joint acquisition of Sapporo Holdings' real estate at a JPY 477 bn enterprise value

On 24 December, US asset management giant KKR and funds managed by Asian private equity firm PAG jointly announced that they had signed a definitive agreement to acquire the real estate assets of Japanese brewer Sapporo Holdings, at an enterprise value of JPY 477 bn (c. RMB 21.5 bn, including debt) - the largest Japanese real estate transaction of 2025.

The acquisition will be executed in three stages through an entity jointly established by the two firms, with full completion expected by the end of June 2029. Sapporo Holdings said the proceeds will be used to optimise its capital structure and refocus on its core beer business; the transaction remains subject to customary closing conditions.

Blackstone: buys an Osaka Shinsaibashi hotel for JPY 14 bn and Tokyo's C-NX logistics facility for over JPY 100 bn

On 22 December, US private equity giant Blackstone announced that, through its real estate funds, it had reached an agreement with Singapore's City Developments Limited (CDL) to acquire the Bespoke Hotel Osaka Shinsaibashi in the core Shinsaibashi precinct of Osaka, Japan, for JPY 14 bn (c. USD 89 m), with completion expected this month. Public information indicates the hotel is a freehold property that opened in 2019, with total GFA of c. 5,585 sqm, 256 rooms and a cap rate of c. 4.1%.

On 25 December, Blackstone announced that a fund it manages had completed the acquisition of the C-NX Grade A logistics facility in Tokyo for over JPY 100 bn (c. USD 680 m), located at a core logistics node in Tokyo, Japan.

C-NX has total GFA of c. 280,000 sqm with occupancy sustained above 98%, its main tenants spanning e-commerce and third-party logistics operators. Blackstone said the acquisition expands its Asian infrastructure and logistics portfolio, and that it is positive on continued growth in warehousing demand across Japan's capital region.

Market Data

25,800 aging urban residential compounds started renovation in January-November 2025

The latest MOHURD data show that 25,800 aging urban residential compounds started renovation nationwide in January-November 2025.

By region, 22 jurisdictions plus the Xinjiang Production and Construction Corps had completed their annual renovation plans over January-November: Beijing, Tianjin, Hebei, Inner Mongolia, Liaoning, Jilin, Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi, Shandong, Guangxi, Hainan, Chongqing, Guizhou, Yunnan, Tibet, Shaanxi, Gansu and Qinghai.

Top-100 developers' land spend reaches RMB 847.8 bn in January-November 2025, up 14.1% YoY

In January-November 2025, the top 100 developers spent RMB 847.8 bn on land, up 14.1% YoY. Central and local state-owned enterprises remained the dominant buyers, accounting for eight of the top ten by land spend. In November, private developers were relatively active, some acquiring land jointly with SOEs and others bidding independently to deepen their presence in core markets. Private-sector land purchases were concentrated in hot tier-1 and tier-2 core cities - for example Maoyuan Real Estate in Beijing, Dahua Group and Jiayun Real Estate in Shanghai, and Binjiang Group in Hangzhou.

For January-November 2025, China Overseas Land ranked first with RMB 196.3 bn of new saleable value, followed by China Merchants Shekou at RMB 183.3 bn - both boosted substantially by Shanghai urban renewal projects. Greentown China ranked third with RMB 129.3 bn. The top 10 developers added RMB 1,144.6 bn of new saleable value over the period, 47.1% of the top-100 total.