“We are moving from a volume-driven market to one defined by selectivity, execution and cash-flow resilience.” —— James Macdonald, Savills Research

Opportunities Form as Prices Reset

• 18 en-bloc transactions were completed in Q4/2025, with a combined value of RMB9.47 billion. The total transaction volume for the year amounted to approximately RMB41.2 billion, representing a 46% YoY decrease.

• Key buyers remained government-backed platforms and leading private enterprises. Market sentiment eased slightly, with more enquiries for high-quality assets.

• Foreign investors remained cautious about increasing exposure with few foreign-led deals in 2025.

• Office was the most active asset class, with nine transactions totalling RMB4.94 billion. Notable deals included Cathay Lujiazui Life Insurance (CLLI)’s acquisition of Fusion New Bund #N5 and the sale of Rongjing Jieyuan.

• CDH Investments acquired the Base Suhe serviced apartment project, completed shortly after Shanghai’s July 2025 “commercial-use integration” announcement.

• Zhengtai Group acquired Evergrande’s Shanghai R&D and manufacturing base (Phase I) in Songjiang via foreclosure for ~RMB100 million, in a policy-restricted industrial transaction limited to qualified end-use operators, resulting in a narrower bidder field and a sub-market pricing outcome.