“The industry is moving from broad classifications to more refined tenant profiling. Operators are tailoring products around lifestyle, spending patterns, and quality expectations.”

JAMES MACDONALD, SAVILLS RESEARCH



Building Competitive Advantage Through Product Differentiation

• ­­­The 132-unit Steigenberger Hongqiao launched in Q3/2025, adding new serviced apartment supply. The property was formerly the Sincere Residence Hongqiao.

• ­­­The premium multifamily sector also recorded two new project, the Dongyuan Melive Residence (Gubei) and Funlive (Wujing), contributing 909 units.

• ­­­Citywide serviced apartment vacancy rose 0.4 ppts QoQ to 21.1%. Average rents fell 1.6% QoQ to RMB274.3 psm pmth, remaining broadly stable YoY.

• ­­­Premium multifamily vacancy edged up 0.2 ppts QoQ to 22.2%, with rents declining 1.5% QoQ to RMB170.9 psm pmth.

• ­­­Leading operators are enhancing competitiveness through differentiated product offerings that align with the younger tenant generation’s desire for identity, community, and lifestyle appeal.