GRA Market Weekly (2026-04-11)

Macro Policy

Ministry of Emergency Management and National Fire and Rescue Administration: government to procure fire safety services for aging compounds and commercially operated self-built buildings

At a policy briefing held by the Ministry of Emergency Management and the National Fire and Rescue Administration on 8 April, an official of the latter explained that, to address long-standing weak fire safety fundamentals and prominent hazards across the vast stock of aging residential compounds and commercially operated self-built buildings, the recently issued Opinions on Strengthening Grassroots Fire Safety Work from the General Office of the State Council sets out innovative measures: using government procurement of services to build shared regional fire control rooms and self-defence and self-rescue capabilities, promoting new intelligent fire safety products, and incorporating these into government livelihood project programmes.

Targeted Policies

Beijing's 15th Five-Year Plan: optimising government-subsidised housing supply, with apartment- and dormitory-type units targeted at over 60% of subsidised rental housing

On 8 April, the full text of the Outline of Beijing's 15th Five-Year Plan for National Economic and Social Development was released, setting out continued progress toward adequate housing for all during the plan period through two tracks - optimising subsidised supply and stabilising market development - to improve the housing security system and promote steady, healthy development of the property market.

On strengthening housing security capacity, Beijing will accelerate the construction of a new development model for real estate and improve both the "market plus subsidised" supply system and a housing system giving equal weight to renting and buying. Core measures include:

• Stepping up the revitalisation of existing resources and optimising government-subsidised housing supply to meet the basic housing needs of urban wage earners and various categories of households in difficulty
• Improving the subsidised housing management information platform to achieve precise matching and efficient coordination of subsidised resources, keeping the coverage rate for registered households above 85%
• Increasing supply of "a bed" and "a room" products, with a particular push to raise the share of apartment- and dormitory-type government-subsidised rental housing to a target of 60% or more, improving living conditions for workers who keep the city running

Shenzhen: new cross-district "financial adviser" service mechanism to pair 82 priority projects with capital, including real estate workouts

On 8 April, the inaugural event for the formation of Shenzhen's investment and financing financial advisory panel, hosted by the Office of the Financial Commission of the CPC Shenzhen Municipal Committee, was held at PICC Finance Building. A first cohort of 12 financial institutions was formally appointed to the "financial advisory panel" and signed pairing agreements with district-level development and reform, finance, housing and construction, and urban renewal departments. Going forward, they will engage in in-depth matching around an initial batch of 82 priority investment and financing projects across four key areas: real estate project workouts, special bonds and bond-loan linkage, state-owned asset revitalisation and SOE bond issuance, and new policy-based financial instruments.

At the breakout session on real estate project workouts, experts provided policy interpretation on practical difficulties such as ring-fencing creditor-debtor relationships in urban renewal projects and the "last in, first out" principle in escrow supervision, and proposed risk resolution paths including equity ring-fencing and judicial restructuring.

Shenzhen: non-residential buildings may convert to public service facilities and student dormitories, with land premium top-ups waived for five years

To revitalise low-efficiency existing space resources and promote high-quality urban development, the Shenzhen Municipal Planning and Natural Resources Bureau and the Shenzhen Municipal Housing and Construction Bureau recently jointly issued the Implementation Measures for the Functional Conversion of Existing Non-Residential Buildings in Shenzhen, optimising land allocation, filling livelihood gaps, supporting the real economy and scientific research, and further improving Shenzhen's system for converting and reusing existing resources.

The measures provide that non-residential buildings with completion approval and clean title - including retail, office, factory and R&D premises - may apply for temporary functional conversion, with conversion directions prioritising livelihood and industry uses: public service facilities such as culture, education and healthcare; student dormitories under the unified management of higher and vocational institutions; and policy-compliant research facilities and producer services. Some building categories may switch functions in both directions internally. Applications must satisfy core conditions including clean title, structural safety, absence of illegal construction and exclusion from demolition plans, and must obtain the consent of relevant rights holders. The policy sets a five-year transition period, during which livelihood and research projects on the positive list are exempt from land premium top-up payments; on expiry they may apply for a one-off extension or a permanent change of use, failing which the original function must be restored.

Hong Kong: tax regime for funds and family investment holding vehicles to be refined to invigorate the private investment market

On 10 April, Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, said a series of tax refinements had been drafted, including broadening the definition of "fund" and the range of qualifying investments, relaxing tax exemption treatment for special purpose entities, and enhancing carried interest tax concessions, with the aim of promoting the asset and wealth management market. A consultation paper will follow, with legislative amendments to be made in light of industry feedback before implementation.

Market Watch

Hangzhou: all five residential plots clear at a premium for total proceeds of RMB 7.354 bn

On 8 and 10 April, two concentrated land auctions in Hangzhou ran hot, with all five plots clearing at a premium and setting a positive tone for the second quarter.

Three plots were offered on 8 April, with a combined starting price of RMB 4.482 bn and final proceeds of RMB 5.862 bn at an average premium of 30.8%:

• The Xiangqifang plot in Binjiang District went to China Resources Land for RMB 3.951 bn after 127 rounds of bidding, at an accommodation value of RMB 41,108/sqm and a 46.83% premium - a record land price for the precinct
• The low-density Xianlin residential plot in Yuhang District (plot ratio 1.05) went to Baoyi Real Estate for RMB 612 m, at an accommodation value of RMB 15,653/sqm and a 21.91% premium
• The East Bay New Town plot in Qiantang District went to a Xingyao Real Estate and Binjiang Group consortium for RMB 1.299 bn, at an accommodation value of RMB 13,396/sqm and a 0.78% premium

Two plots were offered on 10 April, with a combined starting price of RMB 1.032 bn and proceeds of RMB 1.492 bn, both at premiums above 20%:

• The Shuangqiao unit plot in Xihu District went to Binjiang Group for RMB 963 m after 73 rounds of bidding, at an accommodation value of RMB 19,129/sqm and a 59.67% premium
• The Qiaosi unit plot in Linping District went to Greentown for RMB 529 m, at an accommodation value of RMB 12,950/sqm and a 23.33% premium

Guangzhou: China Jinmao takes a Liwan residential plot for RMB 1.488 bn at a 6.44% premium

On 9 April, Guangzhou offered one residential-use plot in Liwan District, which China Jinmao secured for RMB 1.488 bn at a 6.44% premium. The plot is zoned Class II residential (R2) compatible with sports (A4) and transport terminal (S4) uses, with a site area of 25,859.31 sqm, planned GFA of 55,904.67 sqm, a plot ratio of 2.16, a starting price of RMB 1.398 bn and a starting accommodation value of RMB 25,000/sqm.

The plot attracted two bidders and, after 10 rounds, Guangzhou Jinmao Real Estate won at RMB 1.488 bn, an accommodation value of RMB 26,610/sqm and a 6.44% premium.

Dapuqiao, Huangpu, Shanghai gains a new owner: Kunda Yuanqing buys three retail podium properties at Jinyulan Plaza for RMB 307 m at judicial auction

In mid-March, Shanghai Kunda Yuanqing International Trading ("Kunda Yuanqing") successfully acquired three retail podium properties at Jinyulan Plaza, 11 Dapu Road, Huangpu District, Shanghai via judicial auction for an aggregate RMB 307 m. The deal marks a fresh round of ownership change and value repricing for a core existing asset in this mature retail district.

Jinyulan Plaza sits at the heart of the Dapuqiao retail district in Huangpu, immediately adjacent to Dapuqiao Station on Metro Line 9, with well-known retail landmarks such as SML Center and Tianzifang nearby - a strong retail atmosphere and excellent transport accessibility. As one of the area's signature complexes, Jinyulan Plaza has since completion been a visual focal point and commercial high ground along Dapu Road, thanks to its distinctive "Hanging Gardens of Babylon" style ascending plaza design and comprehensive business amenities. The three podium properties auctioned sit in the plaza's core retail zone, with high visibility and strong operating potential - a classic scarce asset in a mature location.

Kunda Yuanqing's move signals long-term conviction in the value of commercial real estate in Shanghai's core districts. In the current market environment, acquiring quality retail assets in a mature district at relatively reasonable cost through the judicial auction channel not only creates scope for asset appreciation but also lays the groundwork for subsequent operations and tenancy-mix upgrading.

Corporate Watch

ByteDance: nearly RMB 6.1 bn on two Beijing plots in two months, expanding its AI R&D footprint

Information recently disclosed on the Beijing Public Resources Trading Service Platform shows that Beijing Yunxiu Changshi Technology, wholly owned by ByteDance, acquired the Shuangquanbao plot in Xueyuan Road Sub-district, Haidian District for RMB 3.305 bn. This is the tech giant's second major plot in central Beijing in under two months, taking combined investment to close to RMB 6.1 bn.

The newly acquired Shuangquanbao plot falls within Phase III of Dongsheng Science Park, bordering Tsinghua East Road to the north and adjacent to Beishatan Station on Metro Line 15, with 39 universities and over 100 research institutes - including Tsinghua, Peking University and the Chinese Academy of Sciences - within a 3 km radius, a location well matched to AI and frontier technology R&D. The plot covers 48,900 sqm with total GFA of c. 128,000 sqm, a plot ratio of 2.62, planned for office and R&D use on a 50-year term. The contract sets construction commencement at 31 March 2027 and expected completion at 30 March 2030. Judging by ByteDance's current investment priorities, the completed development is likely to house large-model, artificial intelligence and foundational technology R&D functions.

Wanda: redeems Yantai Zhifu Wanda Plaza, with c. RMB 120 m annual rent and near-100% occupancy

Wanda Group recently completed the redemption of Yantai Zhifu Wanda Plaza, a key step in optimising its asset structure amid its debt difficulties. The plaza generates annual rent of c. RMB 120 m at consistently near-100% occupancy; the redemption immediately strengthens Wanda's rental income and cash flow stability, supporting repayment of remaining debt and replenishment of working capital while easing near-term repayment pressure.

Previously, triggered by an IPO-linked bet-on agreement and high leverage, Wanda recouped over RMB 100 bn by selling more than 80 Wanda Plazas and other assets, progressively defusing debt risk. Redeeming a quality asset marks Wanda's shift from "survival" to "quality": it retains a "seed asset" in a core retail district as a candidate for REITs and other capital markets activity, while signalling balance sheet repair to the market.

Wanda's onshore debt has now been cleared, with only a small amount of offshore debt remaining and the near-term repayment peak passed. Going forward, Wanda will maintain its "asset-light plus asset-heavy" strategy, opportunistically buying back high-return assets while advancing asset-light operations, balancing debt resolution against long-term development needs.

Link REIT: sells Singapore retail asset for SGD 250 m, booking a gain of c. SGD 80 m

On 8 April, Link Asset Management ("Link REIT"), Asia's largest real estate investment trust, announced it had reached agreement with Jack Investment Pte Ltd and Pangjwee Development Pte Ltd to dispose of its property interest in Swing By @ Thomson Plaza, a retail property in Singapore, for SGD 250 m (c. RMB 1.34 bn).

Link acquired the asset for SGD 170 m in 2017 and, following an asset enhancement initiative (AEI) and operational optimisation, exited at SGD 250 m at the top of the market, booking a gain of c. SGD 80 m (c. RMB 400 m) - a textbook execution of the "Buy-Enhance-Sell" capital recycling strategy of a real estate asset manager.

Market Pulse

Morgan Stanley: liquidity risk in China's property sector appears largely behind us

On 9 April, Morgan Stanley published a report noting that while developers generally remain cautious on the property market outlook, it expects margins and earnings at some Chinese developers to recover from 2026, supported by improving development margins and strong rental income growth.

Market Data

CBRE releases Q1 2026 Beijing and Shanghai market reviews: Beijing en-bloc transactions of RMB 11.08 bn, +19% YoY

On 9 April, CBRE simultaneously released Q1 2026 real estate market review reports for Beijing and Shanghai, analysing office, logistics and retail performance in the two core cities, which overall displayed "structural divergence and resilient recovery".

In Beijing, the office market saw no new completions for a third consecutive quarter. Affected by the Spring Festival holiday and a decline in large-floorplate deal activity, citywide new leasing volume fell 14% QoQ and 16% YoY; however, relocations accounted for 72% of transacted area and were the core driver, while the number of expansion and newly established company deals rose QoQ, indicating a mild recovery in endogenous momentum. As at the end of Q1, Beijing office vacancy stood at 18.5%, down 0.6 percentage points QoQ, with Grade A vacancy down 0.9 percentage points QoQ - evidence of a strong pull toward higher-quality properties. Reflecting landlords' "price for volume" strategy, the citywide average headline office rent fell 2.1% QoQ to RMB 223.5 per sqm per month. Logistics stood out, with single-quarter net absorption reaching 198,000 sqm, an all-time high, driven mainly by the Pinggu submarket, with consolidation and relocation demand from leading third-party logistics and auto parts firms as the core support. En-bloc activity picked up, with 10 deals in Q1 totalling c. RMB 11.08 bn, up 135% QoQ and 19% YoY.

Shanghai was characterised by "quality supply leading demand and continuous upgrading of consumption formats". Four new office projects were delivered, totalling c. 472,000 sqm; quality Grade A projects gave occupiers more upgrade and relocation options, driving continued QoQ improvement in citywide absorption. On the demand side, professional services led with a 21% share - with advertising and media firms and law firms standing out - followed by financial services and consumer goods, while third-party office and hotel demand gained share and leasing structures became more diverse. Retail demand was active, with food and beverage the core driver at 43% and Asian cuisines returning strongly; fashion and apparel accounted for 23%, with womenswear notably recovering and Korean brands continuing to expand, and jewellery openings active. CBRE notes that Shanghai's offline consumption appetite is being rapidly reconstituted, and that the expansion of differentiated formats such as the debut economy and the silver economy is helping the market offset homogeneous competition and pushing commercial real estate toward high-quality development.

Overseas Watch

Hong Kong: 4,621 secondary residential transactions in March, a four-and-a-half-year high; Q1 value close to HKD 100 bn

Hong Kong's property market showed strong recovery momentum from the start of 2026, decisively breaking the usual pattern of a seasonally quiet first quarter. Per the latest monitoring data from Centaline Property, the secondary private residential market was active in March, recording 4,621 transactions worth HKD 35.84 bn. Not only were these up sharply by 18.1% and 20.7% respectively from February, but the case count also broke through the 4,000 mark for the first time since July 2021, a high of more than four and a half years (56 months).

Across the first quarter as a whole, the Hong Kong secondary residential market showed a healthy pattern of rising volumes and prices. Q1 recorded a cumulative 12,449 transactions worth HKD 94.91 bn, up 13.6% and 12.4% respectively QoQ. Historically, the quarter's case count was the highest in nearly 18 quarters since Q3 2021, while value was the highest in nearly 15 quarters since Q2 2022. Taken together, the data strongly corroborates a marked repair in market confidence and an accelerating release of purchasing power.

BOCHK: full rollout of "Mainland China Property Purchase Remittance" service covering all mainland cities

On 9 April, Bank of China (Hong Kong) fully rolled out its "Mainland China Property Purchase Remittance" service, extending the remittance coverage of its previous Greater Bay Area home purchase remittance service to all mainland cities. At the same time, eligible customers were extended from Hong Kong permanent residents to Macao permanent residents, Taiwan residents and foreign nationals, so as to facilitate home purchases on the mainland by non-mainland buyers and promote regional integration and talent mobility.

The BOCHK service allows customers holding a Mainland Travel Permit for Hong Kong and Macao Residents, a Mainland Travel Permit for Taiwan Residents, or a foreign passport to remit funds for primary and secondary property purchases to receiving banks in all mainland cities. Eligible customers must visit a bank branch to arrange the service and may remit in HKD, RMB or foreign currency; for non-RMB remittances, the mainland receiving bank handles the conversion and crediting.