GRA Market Weekly (2026-08-28)

Policy Watch

Three ministries jointly issue a notice advancing completed-home sales of commodity housing; presale thresholds tightened across the board

On 28 August, MOHURD, the Ministry of Natural Resources and the National Financial Regulatory Administration jointly issued the Notice on Improving the Commodity Housing Sales System (Jian Fang Gui [2026] No. 3). Key contents:

Tighter presale conditions: for commodity housing projects sold by presale, each individual building must have completed structural topping-out, with specific conditions to be set by each locality
Full-scope oversight of presale proceeds: all home-purchase funds, including down payments and mortgage loans, must be deposited into escrow accounts, with oversight lifted only after completion acceptance and once supporting facilities are ready for delivery
Vigorous and orderly rollout of completed-home sales: from the date the notice takes effect, projects on newly granted land and projects on already-granted land that have not yet obtained a construction engineering planning permit are to give priority to completed-home sales; a deposit system for completed-home sales is introduced, allowing a small deposit to be collected once the construction permit is obtained
Rollout of "title deed on delivery": online contract registration, title registration and mortgage procedures are streamlined so that the real estate title certificate is obtained at the same time as delivery
Financing support: a lead bank system is implemented, development companies are supported in raising funds through equity, bonds and other channels, and development loan disbursement is matched to the construction cycle

Raising the presale threshold from "above ground" to "structural topping-out" extends developers' cash-collection cycle by 3-6 months and adds funding pressure on high-turnover developers; but the exemption for existing projects provides a transitional buffer, concentrating the real impact on newly acquired land. The full rollout of completed-home sales will fundamentally reshape the industry's operating model - from "presale proceeds + high leverage" to "own capital + long-term financing + product competition" - accelerating the exit of inefficient developers and favouring leading developers with sound finances and strong products; "title deed on delivery" lowers homebuyers' perceived risk, should help restore demand-side confidence, and is a medium-term positive for residential investment.

Chengdu and Xi'an follow: a flurry of new housing policies land in tier-2 cities

Chengdu (25 August) launched "Ten Measures for the Property Market": the housing provident fund down-payment ratio is cut to 15%, a one-year subsidy of 20% of loan interest is offered (capped at RMB 25,000 per loan), and districts are encouraged to issue subsidies for group purchases, parking-space purchases and the like
Xi'an (26 August) announced five new property measures: raising housing provident fund loan and withdrawal limits, earmarking RMB 50 m in special subsidy funds, and supporting residents in "selling old to buy new"

Market Watch

Beijing: Tuqiao residential plot in Tongzhou goes 187 rounds; BBMG takes it for RMB 870 m

On 27 August, Plot FZX-0306-6037 of the Tuqiao East-West site, Phase I of the Tongzhou old-town bungalow shantytown redevelopment project in Beijing (Listing No. Jing Tu Chu Gua (Tong) [2026] 043), went to live auction. The plot is zoned residential, with a site area of 16,140.23 sqm (24.21 mu), planned GFA of 32,280.46 sqm and a plot ratio of 2, at a starting price of RMB 684 m and a starting accommodation value of RMB 21,189/sqm.

The plot had already drawn 3 rounds of bids during the listing stage, and three developers - China Merchants Shekou, BBMG and Tianjin Zhuochen Shengchuan (天津卓宸盛川) - joined the live auction. After 184 rounds of on-site bidding, BBMG won with a total of RMB 870 m, at an accommodation value of RMB 26,951/sqm and a 27.19% premium.

Nantong: two prime commercial-residential plots in Tongzhou sell for RMB 950 m, with the top accommodation value at RMB 8,955/sqm

On 24 August, two commercial-residential plots in Nantong's Tongzhou District, numbered CR2026-007 and CR2026-008, were successfully auctioned. The two plots cover a combined site area of c. 73,300 sqm (c. 110 mu) with total GFA of c. 110,000 sqm, and were won by local SOEs Nantong Zehong Real Estate Co., Ltd. (南通泽宏置业) and Nantong Runkai Real Estate Co., Ltd. (南通润凯房地产) respectively, for a combined c. RMB 950 m at accommodation values of RMB 8,087/sqm and RMB 8,955/sqm - a sign of steady market confidence.

The main urban area and the Jinshawan New Area where the two plots sit are gaining unprecedented strategic momentum. The Jinshawan New Area borders the new Nantong airport to its southeast - a mega-project formally included among the 109 major projects listed in the national 15th Five-Year Plan outline, planned and built to the top 4F civil aviation grade with a designed annual passenger throughput of 40 million, jointly developed by Shanghai and Jiangsu (Shanghai Airport Authority holding 51% and Nantong Urban Construction Group 49%), operated as one system with Pudong and Hongqiao airports, and expected to break ground in full before the end of 2027. As a key component of Shanghai's international aviation hub, the new airport will accelerate the concentration of people, goods and capital flows in Tongzhou's northern wing, lifting the Jinshawan New Area from a former "urban-rural fringe" to a high-value airport gateway.

Ningbo: Yinzhou high-tech zone residential plot clears at a 25.83% premium; China Overseas takes it for RMB 692 m

On 24 August, Ningbo successfully granted Plot GX02-01-23 (high-tech zone) in Yinzhou District, zoned for urban residential and supporting use. After 72 rounds of bidding, Ningbo Zhonghai Haitang Real Estate Co., Ltd. (a China Overseas Land & Investment subsidiary) secured the plot for a total of RMB 692 m at a 25.83% premium.

Data Watch | Shrinking volumes alongside hot core markets

Since the start of August, the land market has continued to show "pockets of heat", with prime plots in core cities drawing concentrated developer attention. China Index Academy data show that, as of 19 August, planned GFA of residential land sold across 300 cities in August stood at 12.09 million sqm (-34.2% YoY), while land proceeds reached RMB 68.4 bn (+6.9% YoY).

Limited capital is concentrating further in prime submarkets of core cities with strong demand support and clear absorption prospects. By city tier, residential land premiums averaged c. 19.6% in tier-1 cities, c. 8.9% in tier-2 cities and only c. 2.8% in tier-3 and tier-4 cities.

Shanghai: commercial real estate en-bloc transactions reach RMB 27 bn in H1, up 20% YoY

JLL data released on 20 August show that Shanghai completed 51 commercial real estate transactions in H1 2026, with total investment volume of RMB 27 bn, up 20% YoY. En-bloc transactions and core assets within the Inner Ring accounted for the bulk of the market, and owner-occupier demand rose markedly - indicating that, as asset prices adjust and market expectations improve, capital is once again increasing its allocation to quality Shanghai commercial real estate.

By quarter: Q1 saw 24 deals and c. RMB 14.6 bn of investment, up 27% YoY; Q2 saw 27 deals and c. RMB 12.4 bn, up 14% YoY. Both quarters posted YoY growth in investment volume, with market activity continuing to pick up.

The shift in transaction structure is equally noteworthy. Owner-occupier demand's share of Shanghai commercial real estate transactions rose to 43% in H1, up sharply from 18% for full-year 2025 - corporates are becoming important buyers in the market. Domestic corporate buyers accounted for 56%, and institutional investors and insurance capital for 34%. Offices were the asset class attracting the most capital, at c. 60% of H1 investment. With prices having undergone a degree of correction, insurers and large enterprises with headquarters office needs are beginning to accelerate their allocation to core-area assets.

Meanwhile, Shanghai's recently issued trial guidance on land-use-right renewal for industrial and commercial land also provides new policy support for the long-term holding value of existing commercial real estate. The principle of "renew wherever eligible" clarifies expectations for the continuity of corporate property rights, should ease market concerns over the land tenure of some existing assets, and further unlock the value of core-area assets.

Project Watch

Shanghai Lingang: 20,000 affordable rental housing units brought into the 15th Five-Year Plan housing security system

On 21 August, Tang Hao, full-time deputy director of the Lingang New Area Administration, said at a press conference in the "Getting the 15th Five-Year Plan Off to a Good Start" series that during the 15th Five-Year Plan period the Lingang New Area will follow the development philosophy of "gathering people through industry, nurturing them through careers, warming them through housing and retaining them through services", working across four dimensions in concert to comprehensively optimise the development ecosystem for young talent and ensure that talent of all kinds "can be attracted, retained and developed".

On housing security, the Lingang New Area will build a multi-tiered, low-cost housing supply system: from "Youth Stations" for new arrivals, to 20,000 affordable rental housing units, to 4,000 dedicated talent apartments - using diversified housing options and ever-improving service standards to strengthen young talent's sense of belonging and fulfilment in Lingang.

Shanghai Zhangjiang: Marriott Executive Apartments opens - the brand's Shanghai debut, in the heart of the sci-tech hub

On 26 August, Marriott Executive Apartments Shanghai Zhangjiang formally opened in the core of Zhangjiang Science City, the brand's first property in Shanghai and its 13th in Greater China.

The property offers 249 apartment-style rooms and suites of 45 to 182 sqm, equipped with full kitchen appliances, washer-dryers and high-speed Wi-Fi. For dining, the Yiranju (怡然居) restaurant serves local Shanghainese breakfast specialities such as Sanlintang black-skin wontons and old-Shanghai sticky rice rolls; facilities include Technogym fitness equipment, a panoramic heated infinity pool and 176 sqm of multi-function meeting space. The opening aims to serve research talent and business travellers in Shanghai and to strengthen high-end accommodation provision in the Zhangjiang area.

Shanghai Qiantan: Taikoo Li expansion doubles retail area to 259,000 sqm, with completion expected by year-end

The "expansion" of Pudong Qiantan's retail landmark now has a firm timetable. According to reports on 27 August, the Taikoo Li Qiantan expansion is expected to formally complete by the end of 2026. Total retail area will then double from the current c. 110,000 sqm to c. 259,000 sqm, and the brand count will exceed 600.

Connectivity is the key highlight. The expansion is not a standalone retail development - the c. 150,000 sqm of new commercial space will link the existing Taikoo Li Qiantan retail area with Qiantan Plaza (前滩广场), home to two premium Grade A office towers, via underground passages and sky bridges. The design will completely remove the pedestrian barriers between offices and malls in the area, forming a high-density retail, office and lifestyle complex.

Settings are refreshed in step. Unlike the existing open-air lane-house style, the expansion will introduce a "mountain and forest" theme inspired by the landscapes of Huangshan, weaving stone and planted landscaping into indoor and outdoor spaces, with a focus on immersive social settings. The number of anchor stores will jump from the current 4 to 10.

Corporate Watch

KKR seeks to sell nine commercial real estate projects in China at a discount of c. 50%

On 27 August, market sources reported that New York-headquartered private equity firm KKR is seeking to sell nine commercial real estate assets in China at a steep discount, with sale prices expected to be only around 50% of the original acquisition prices. The nine projects on offer span Beijing, Shanghai and other cities, with two landmark assets drawing the most attention.

First: Funlive Apartments in Daxing, Beijing. The project is the only dual-metro TOD complex in the area, surrounded by six major retail hubs including Joy Breeze and Longfor Paradise Walk, positioned as mid-to-high-end apartments for white-collar tenants, with c. 3,000 units and monthly rents ranging from just over RMB 2,000 to over RMB 4,000. KKR acquired it from SCE Group for c. RMB 1.87 bn in early 2022, with SCE Funlive continuing to handle operations and management.

Second: Crystal Orange Hotel at Yu Garden on the Shanghai Bund. The asset is the hotel component of the "Shanghai Bund NEO" urban renewal project, formerly the Fudu Commercial Building (福都商厦) completed in 2009 - a long-established small-commodities market. After KKR and Hantong Capital (翰同资本) jointly acquired it in 2019, they converted it into a 17,000 sqm mixed-use complex. The whole building is now on offer at c. RMB 900 m.

Hong Kong: six-party consortium wins the Northern Metropolis Hung Shui Kiu site-wide development project

On 24 August, the Hong Kong SAR Government's Development Bureau announced the tender result for the first "site-wide development" pilot in the Hung Shui Kiu/Ha Tsuen New Development Area of the Northern Metropolis: a site of c. 11 hectares in the area was awarded for HKD 1.03 bn. The winner is a rare six-party consortium joint venture made up of mainland central-SOE developers, a mainland e-commerce giant and Hong Kong capital.

The consortium members are China Overseas Land & Investment, China Merchants Land, China Resources Land, China Tourism Group, JD.com and Sino Land. HSK New Development Limited, formed by the six companies, submitted its tender on 3 July this year. According to the announcement, China Merchants Land, China Overseas, China Resources Land (Overseas), China Travel Investment (中旅投资), JD.com and Sino Land hold 17%, 17%, 17%, 15%, 17% and 17% of the joint venture respectively.

Unlike a conventional residential project, this is not pure land development. The project won by the joint venture comprises three residential/commercial sites and one enterprise and technology park site, with a total area of c. 36,200 sqm and permitted total GFA of c. 220,000 sqm. JD.com is expressly built into the project's industrial operations - JD Logistics will move in as the anchor enterprise and build a smart modern logistics centre; based on its shareholding, JD.com's capital contribution to the project is HKD 2.856 bn.

Hong Kong: ESR Asset Management trims Prosperity REIT stake for three straight days

From 24 to 26 August, ESR Asset Management reduced its holding in Prosperity REIT on three consecutive trading days, selling a total of 538,000 units at an average price of c. HKD 1.46 per unit, for c. HKD 786,300 in total. ESR had also sold 172,000 units on 20 August, and the pace of disposals has recently quickened.

Although each disposal is small, the run of sales reflects the asset manager's cautious stance on the near-term scope for valuation recovery in Hong Kong office and industrial/commercial property REITs. While Hong Kong's office market is showing signs of recovery (Central vacancy has fallen below 10% for the first time in 4 years), the secondary market for REITs still faces portfolio-rebalancing pressure from institutional investors, and the recovery in REIT liquidity and valuations may take longer.

Overseas Watch

Thailand: Chinese buyers' spending on Thai condominiums plunges 27.7%, as the Asia-Pacific cross-border allocation landscape reshapes at pace

On 28 August, Reuters cited data from the Real Estate Information Center (REIC) of Thailand: foreign buyers purchased 6,533 condominium units in Thailand in H1 2026, down 8.8% YoY, with transaction value falling to THB 28.3 bn (c. RMB 5.56 bn). Chinese buyers' purchase spending fell 27.7% YoY, the steepest decline of any group.

Over the same period, Russian buyer demand bucked the trend, surging 75.9%, concentrated in Phuket and Pattaya. But this enthusiasm from the north falls far short of filling the vacuum left by the largest buyer group - the market scale and depth of capital Chinese buyers built up over many years cannot be absorbed by any single country in the short term. REIC has already warned that next year's market will remain "full of challenges".