“Despite the challenges of the current market, demand for high-quality, well-located serviced apartments remains strong. The future of the rental housing sector will depend on operators’ ability to innovate and adapt quickly to shifting market dynamics.”

JAMES MACDONALD, SAVILLS RESEARCH



Rental Market Faces Increased Pressure

• Two serviced apartments opened in Q1/2025, adding 182 units to the market: Haig Court (海格公寓) and Ascott North Bund (雅诗阁北外滩).

• The macroeconomic environment continues to affect Shanghai’s rental housing market. Economic slowdown, reduced consumption, and job market instability are pushing the industry to focus more on operational efficiency and service quality.

• Vacancy rates for serviced apartments rose by 0.4 percentage points to 20.6% in Q1/2025, while rents decreased slightly by 0.1% QoQ to RMB263.5 per square metre per month, a 2.1% YoY decline.

• In addition to Adoor North Bund (雅诗阁雅遇), which launched with Ascott North Bund, Base Caohejing (佰舍漕 河泾) also opened this quarter, adding a total of 435 units to Shanghai’s premium multifamily market.

• With demand slowing, the Spring Festival back-to-work surge did not lead to a full market recovery. While rents for premium multifamily properties remained stable, vacancy rates rose by 0.4 ppts QoQ to 20.3%.