GRA Market Weekly (2026-02-01)

Macro Policy

MNR, Ministry of Civil Affairs and National Health Commission jointly issue land-supply measures for elderly care services; land premiums waived for non-profit facilities

On 27 January, the Ministry of Natural Resources (MNR), the Ministry of Civil Affairs and the National Health Commission jointly issued the "Measures on Deepening Natural Resource Factor Support for the Reform and Development of Elderly Care Services", centred on "lowering land costs and activating existing space" to break development bottlenecks and promote high-quality growth in elderly care services.

The three ministries said they will expand the supply of inclusive elderly care services, requiring newly built urban districts and residential projects to deliver elderly care facilities concurrently in line with planning standards. Key measures include:

• Cost reduction: support for mixed-use land development and composite use of space, allowing non-standalone elderly care facilities to be built in combination with other buildings; land for non-profit elderly care institutions to be fully secured and allocated by administrative grant in accordance with the law, with land premiums waived; for-profit elderly care land to move comprehensively to flexible models such as long-term leasing and lease-then-transfer, with land premiums payable in instalments over two years
• Use of existing stock: encouragement to convert or add elderly care and integrated medical-care facilities on leftover and interstitial plots around aging urban residential compounds, with plot ratio and building height adjustments permitted for non-profit elderly care facilities in accordance with regulations; in rural areas, priority use of idle collective construction land for elderly care facilities

The three ministries also confirmed they will promote innovative combined resource supply models to match new formats such as hot-spring and forest wellness precisely. Land for elderly care service facilities will be incorporated into the "one map" system for natural resource management and territorial spatial planning, subject to dynamic supervision, with any change of land use prohibited without statutory procedures.

Guangdong provincial government work report: stabilising the property market in 2026, activating idle office and commercial space

On 26 January, the fifth session of the 14th Guangdong Provincial People's Congress opened in Guangzhou. Delivering the government work report, Governor Meng Fanli said the province will focus on stabilising the property market in 2026. Specific measures:

• City-specific policies to control new supply, destock and improve supply structure; activation of idle commercial and office space; stronger construction and acquisition of government-subsidised housing; and improved institutional arrangements for the rental housing market
• Systematic advancement of "good homes, good compounds, good communities, good districts", raising building quality and property management service standards
• Encouraging and promoting intelligent construction, prefabricated buildings and modular buildings to strengthen the construction industry

Targeted Policies

Shanghai: property tax pilot extended to 27 January 2031

On 29 January, the Shanghai Municipal Finance Bureau, Shanghai Municipal Tax Service and Shanghai Municipal Housing Administration jointly issued a notice extending the validity of the "Notice on Certain Issues Concerning the Pilot Levy of Property Tax on Some Individually Owned Homes in This Municipality", confirming continuation of Shanghai's property tax pilot with validity extended to 27 January 2031.

As of January 2026, Shanghai and Chongqing remain the only cities operating property tax pilots.

Market Watch

Hangzhou: strong start to 2026 land auctions - 30 bidding rounds, 19.81% premium, RMB 877 m in proceeds

On 30 January, Hangzhou held its first residential land auction of 2026. Plot XC0603-14 in the Dongxin unit of Gongshu District is designated for residential use, with a site area of 17,446 sqm, planned GFA of 26,169 sqm, plot ratio of 1.5, building height limit of 50 m, starting price of RMB 732 m and starting accommodation value of RMB 27,974/sqm. Local private developer Hangzhou Bozhi Real Estate Development Co., Ltd. (Boce) secured the plot for RMB 877 m, at an accommodation value of RMB 33,515/sqm and a premium of 19.81%.

Shanghai: eleventh 2025 residential land batch raises RMB 4.018 bn; Changjiang Jinggong, Xiamen ITG and CCCC Urban Investment each win a plot

On 29 January, Shanghai's eleventh residential land batch of 2025 went to auction, offering three residential-use plots in Jiuting (Songjiang), Zhaoxiang (Qingpu) and Qingpu New Town, with a combined site area of 159,500 sqm, combined planned GFA of 205,300 sqm and a combined starting price of RMB 4.018 bn. Changjiang Jinggong, Xiamen ITG and CCCC Urban Investment each took one of the three plots for total consideration of RMB 4.018 bn, at a 0% premium.

Project Watch

Shanghai: Zhonghuan Taoleju subsidised rental community opens with 642 fully fitted units

The "Zhonghuan Taoleju" government-subsidised rental housing community recently opened in the core of Taopu Smart City, Putuo District. It provides 642 fully fitted units ranging from one- to three-bedroom layouts, all equipped with branded appliances and furniture. Located at Nos. 1, 3 and 7, Lane 51 Jiachuang Road, Putuo District, close to Wuwei Road and Qilianshan Road stations on Metro Line 11, the project follows the pricing principle of a 10% discount to market rental housing of comparable location and quality, and allows tenants to withdraw their housing provident fund in full to pay rent.

Taoleju has also set aside 108 units eligible for the linked "talent subsidy" policy - an olive branch from Putuo District to technology and innovation talent in key industries, lowering their living and practical costs in the early stages of their time in the city.

Hangzhou: Ningchao Ning+ Fengge opens with 43,400 sqm under management and 1,232 units

Following Ningchao Apartments Rainbow Sky City and Ningchao Ning+ Heyu Guangnianfu, Anju Ningchao has launched a new project, Ningchao Ning+ Fengge. The project has 43,400 sqm under management across four high-quality buildings, providing 1,232 well-appointed units. As Anju Ningchao's second high-end product in the Ning+ series and currently the largest municipal-level "acquire-and-convert" subsidised rental project in Hangzhou, Ningchao Ning+ Fengge sets a higher standard as a new benchmark for government-subsidised rental housing in the city.

Chengdu: Shufu Youchao International Apartment Community "Yuehu Tianjiao" to open with 395 units / 1,245 rooms

The Shufu Youchao International Apartment Community "Yuehu Tianjiao" is set to open, with 395 planned units (1,245 rooms) of c. 89-128 sqm covering two-, three- and four-bedroom layouts - breaking through the spatial constraints of conventional subsidised rental housing and responding precisely to family demand for more space, better functionality and greater privacy.

Compared with ordinary residential stock nearby, Yuehu Tianjiao offers not only more generous dimensions but comprehensively superior living quality, while rents stay below 90% of market standards for comparable location and quality - an outstanding value proposition. Whether for families seeking a better living and study environment for children, multi-generational households living with parents, or urban professionals wanting spacious comfort, the project accommodates diverse living needs and puts quality living within reach.

Corporate Watch

Guangzhou Anju Group: four subsidised housing projects started, totalling 7,425 units

According to Guangzhou Anju Group's official account on 27 January, the group has opened 2026 with a sense of urgency across its project pipeline, launching construction on four government-subsidised housing projects (Qiaonan, Nangang West, Chentougang and GAC North) totalling 7,425 units, while accelerating 10 ongoing projects totalling 10,578 units. Over the full year it will push forward 18 key projects spanning housing security, urban renewal, heritage conservation and community public services, aiming to generate more physical work volume.

As the municipal platform dedicated to housing security, Guangzhou Anju Group has stepped up the acquisition and supply of government-subsidised housing. In 2026 it has already converted acquired existing commercial and office properties into 664 government-subsidised rental units and issued its first batch sales announcement for for-sale government-subsidised housing, supplying 785 units in total - supporting a strong first quarter, improving the "subsidised plus market" housing supply system and advancing Guangzhou's practice of a new property development model.

Chow Tai Fook's EASE LIVING acquires airport economic zone asset in Shunyi, Beijing - 12 buildings, c. 120,000 sqm GFA

EASE LIVING, together with a leading domestic investment institution, recently completed the acquisition of a quality asset in the Shunyi airport economic zone in Beijing. The deal is EASE LIVING's third heavy-asset project and marks substantive progress in its national expansion strategy. Following the successful delivery of EASE LIVING Songjiang Zhongshan and EASE LIVING Baoshan Zhonghuan in Shanghai, Beijing becomes another market in the group's national roll-out.

The target project is located at Courtyard 13, Anqing Street, Shunyi District, Beijing, comprising 12 standalone buildings with total GFA of close to 120,000 sqm.

EASE LIVING is Chow Tai Fook Enterprises' specialist asset management platform for government-subsidised rental housing. Established in 2023, it focuses on dormitory-style long-term rental apartments, rapidly building market share by acquiring and upgrading heavy-asset projects (such as Songjiang Zhongshan and Baoshan Zhonghuan in Shanghai), and has launched four product lines covering single rooms through to whole units.

Market Data

Property lending slows: outstanding balance of RMB 51.95 tn at end-2025, down 1.6% YoY

People's Bank of China statistics for end-Q4 2025:

• Outstanding RMB property loans of RMB 51.95 tn, down 1.6% YoY, a decline of RMB 963.6 bn over the year
• Outstanding property development loans of RMB 13.16 tn, down 3.0% YoY, a decline of RMB 357.5 bn over the year
• Outstanding residential mortgages of RMB 37.01 tn, down 1.8% YoY, a decline of RMB 676.8 bn over the year

Aging compound renovation advances steadily: 27,100 compounds started in 2025 with RMB 133.2 bn invested

MOHURD data: nationwide, renovation commenced on 27,100 aging urban residential compounds in 2025, covering 4.99 million households, with cumulative investment of RMB 133.2 bn - supporting livelihood improvement and urban renewal.

Market Pulse

"Three red lines" eased: some developers no longer required to report monthly

Media reports indicate that some developers are no longer required by regulators to submit monthly "three red lines" metrics. Regulators have not fully stepped back for distressed developers, however, with some still required to report financial metrics such as gearing on a regular basis.