“With competition intensifying, operators are adopting more granular tenant segmentation and shaping products around lifestyle, consumption patterns and expectations of quality.” —— James Macdonald, Savills Research

Competition pushes product differentiation

• Four serviced apartment projects launched in Q4/2025, adding 630 units, including Kiran Dajing (宽岚·大境), Suhe Meixin Apartment (苏河美欣公寓), West Bund Central Residences Phase II (西岸中环汇二期) and Xuhui Riverside Novotel Serviced Apartments (徐汇滨江诺富特服务公寓).

• Citywide serviced apartment vacancy rose 0.5 ppts in Q4/2025 to 21.6%, with luxury highest at 26.6%; premium multifamily vacancy increased 1.2 ppts in Q4/2025 to 24.3%.

• Serviced apartment rents rose 0.5% in Q4/2025 to RMB275.8 psm pmth (+0.9% YoY), led by luxury up to RMB398.3 psm pmth (+1.4% YoY); premium multifamily rents increased 0.9% in Q4/2025 to RMB172.5 psm pmth.

• With rents under pressure, operators are strengthening “community” offerings, developing more service-led revenue streams, and turning shared spaces into on-site spending touchpoints.

• Smart upgrades are moving towards full-scenario coverage, with deeper personalisation and digital-twin-style operations emerging as the next stage.

• Premium serviced apartment competition is expected to intensify through 2026 as supply continues to rise.