“We’re seeing a shift from simplistic classifications to nuanced tenant segmentation, with operators tailoring products to align with how people live, spend, and prioritise quality.”

JAMES MACDONALD, SAVILLS RESEARCH



Premium Segment Holds Firm as Market Pressures Mount

• ­­­One new serviced apartment launched in Q2/2025, InterContinental Shanghai Jing’an Serviced Apartment, adding 128 units.

• ­­­One new long-term rental apartment entered the market: Modena by Fraser Wujiaochang, contributing 307 long-term rental units.

• ­­­Serviced apartment vacancy rates fell 0.3 ppts QoQ to 20.3%, but rose 1.4 ppts YoY. Rents dipped 0.1% QoQ to an average of RMB266.6 psm pmth, flat YoY.

• ­­­Multifamily vacancy rates rose 1.2 ppts QoQ to 22.0%, with rents stable at RMB 174.2 psm pmth.

• ­­­Competition is increasing between premium multifamily and mainstream serviced apartments, as some high-quality long-term rentals attract tenants by offering better value and improved service.

• ­­­Ascott launched its franchise model in China this quarter, continuing its shift toward an asset-light strategy and rapid market expansion.