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Project Sales and Leasing

JLL optimizes your assets and delivers the highest returns

JLL’s sales and leasing agents are known for being the most creative and knowledgeable in the industry, having represented landlords and their landmark properties in more than 1,000 markets in 80 countries. We’ll help you meet your financial goals by taking a proactive approach to positioning your property, securing tenants or buyers and maximizing the return.

We have access to a worldwide network of colleagues who are specialists in every aspect of commercial real estate. To address rapidly changing demand for office, industrial, retail and residential space, we arm ourselves with research, local market data and trend information. When we represent your property, we’ll develop a marketing strategy that leverages multiple channels, new technologies and proven best practices to attract high-quality tenants or buyers.

Project Leasing

Earning successful returns on leased property means more than filling space. It begins with a firm grasp of what kind of space the most desirable tenants want and what they will pay for it. JLL project leasing team can execute a project leasing strategy for you that will entice the best tenants at the best lease terms and ensure you retain them for lasting value.

Project Sales​

Given the opportunity to represent your property, JLL project sales team will connect with local analysts and other brokers in the marketplace to develop a marketing plan that leverages multiple platforms, appropriate technologies and best practices to drive buyer interest. We help our landlord clients develop most accurate property positioning and customized comprehensive marketing strategy to ensure most suitable buyers and maximization of returns in the sales cycle.


To know more about JLL China Project Sales and Leasing capability, please submit your inquiry via “Contact us” at the right navigation.


News and research

 

 

Beijing CBD office vacancy rate hits record low; primary luxury apartment prices reflect negative growth for fourth consecutive quarter/china/en-gb/news/663/2018q2-beijing-real-estate-reviewBeijing CBD office vacancy rate hits record low; primary luxury apartment prices reflect negative growth for fourth consecutive quarter<p><span style="font-size:18px;"><strong><em>​According to JLL Beijing's Second Quarter Property Market Review</em></strong></span></p><p><strong>Beijing, 12 July 2018 </strong>– "Strong office demand has kept up with new supply across Beijing, driving the CBD vacancy rate down to a record low in the quarter," said Julien Zhang, Managing Director for JLL North China. Meanwhile, in the retail sector, smart electronics and appliance retailers actively expanded in the market. Foreign investors continued to actively search for opportunities in Beijing, after securing funds for the China market as more money was put into Asia. Third-party logistics firms and e-commerce companies continued to drive demand, although leasing activity was limited in the tight market. Luxury apartment price growth remained negative in the primary market for a fourth consecutive quarter, as price restrictions remained in place under the tight-policy environment.</p><p><span lang="EN-US"><strong>Grade A Office</strong> </span></p><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p><strong>Office</strong></p></td><td class="ms-rteTable-default" style="width:50%;"><p><strong>2Q18</strong></p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>3.3%</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>80,000 sqm</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>2.2% q-o-q<br></p></td></tr></tbody></table><p><strong><br></strong></p><p><strong>Demand from domestic finance firms picked up after stalling in the previous quarter</strong>. Financial institutions regained the confidence required to implement growth plans in the quarter, following a merger between the national banking and insurance regulators in 1Q18 and a spike in regulatory fines in 2017. At the same time in the quarter, Chinese state-owned regional banks were forced to hand back <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/office" target="_blank">office</a> space in Beijing. Municipal authorities worked to enforce existing regulations requiring such banks to focus on regional economic development rather than chase opportunities in the capital.<br></p><p><strong>The tight-vacancy rate in the CBD recorded a record low of 3.2% in the quarter</strong>. Driven by limited supply, construction delays, and strong demand from occupiers with various requirements, CBD vacancy edged down further in 2Q18, as did rates in most submarkets. AVIC Building (80,000 sqm) was completed in Wangjing, but had little impact on the overall vacancy rate due to its large self-use component and strong pre-commitment rate, predominantly from IT and high-tech firms.</p><p><strong>Rental growth was positive in all submarkets and proved strongest in the CBD – where the vacancy rate narrowed to a historic low – and neighbouring areas</strong>. Finance Street rental growth was relatively subdued, however, after very few leasing enquiries were made in the previous quarter. "CBD landlords were able to leverage the tight-vacancy environment to raise rents as tenants wasted little time in securing core locations that remained available," said Eric Hirsch, Head of Office Leasing for JLL in Beijing. "Given the continued delays in new building completions, rents in highly sought-after core areas such as the CBD are expected to continue to climb steadily through end-2018."</p><p><strong>Capital Markets</strong></p><p><strong>New Everbright Center (Building 2) sold for around RMB 4 billion, marking the highest-profile transaction in Beijing during the quarter</strong>. Purchased by Postal Savings Bank of China, the office building (76,800 sqm GFA) belongs to a mixed-used complex under construction in Tongzhou. The sale continues the trend of state-owned banks purchasing assets in the emerging submarket, where the municipal government will relocate as the area is developed into the sub-centre of Beijing. In a deal announced in early July, Allianz purchased ZLink from Kailong Group and Goldman Sachs. The 31,000 sqm-business park in Zhongguncun was reported to be valued between US$ 185 million and US$ 196 million.</p><p><strong>In the quarter, foreign investors continued to actively search for opportunities in Beijing</strong>, particularly as funds were secured for the China market as more money was put into Asia. In its largest-ever fund-raising activity, US private equity firm Blackstone raised US$ 7.1 billion to invest in real estate across Asia. UK-based real estate asset manager AEW Capital Management also announced that it had raised US$ 1.12 billion for an Asia Pacific property fund that includes Beijing as a target market. "As foreign investors become more active in Asia, we expect to see them buying more assets in Beijing and across China," said Michael Wang, Head of <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/investors-and-developers/capital-markets" target="_blank">Capital Markets</a> for North China at JLL. "At the same time, with several major deals already under negotiations in Beijing, we can expect to see more deals close in the coming months. All of this will help drive investment growth in Beijing during the second half of the year, and may lead the 2018 investment volume to outperform 2017 levels."</p><p><strong>Prime Retail</strong><br></p><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Retail </p></td><td class="ms-rteTable-default" style="width:50%;"><p>2Q18</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>6.6%</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply*</p></td><td class="ms-rteTable-default"><p>175,000 sqm</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>0.5% q-o-q</p></td></tr></tbody></table><p><em>Note: Prime Retail refers to the Urban market. *New Supply is inclusive of the Suburban market. </em><br></p><p><strong>Smart electronics and appliance retailers actively expanded in the market, with a focus on experience stores</strong>. Popular UK household appliance-maker Dyson opened its first experience store in Beijing, marking its third such store in China. Wireless speaker and home sound systems retailer Sonos and PC giant Dell also opened new stores in the quarter. Meanwhile, designated art galleries and cultural exhibitions have become a baseline requirement for prime regional and destination malls. WF Central's 'Serpentine Galleries' exhibit from London was the highest-profile opening in 2Q18, while Raffles City and Xidan Joy City also introduced new art exhibits in the quarter. <br></p><p><strong>In the quarter, key openings included one premium children's project in the CBD and one suburban mall in south Beijing</strong>. Space 3 opened in the CBD with a focus on the premium children's market, targeting parents of students attending the nearby Beijing City International School and young families in the area. Developed by the same operator of the well-established school, the project entered the market with high commitment. In the suburbs, Han's Plaza unexpectedly opened after sitting vacant for more than two years following completion. The quality mall entered the market with a strong tenant mix: nearly 75% of brands entered suburban Yizhuang in south Beijing for the first time. <br></p><p><strong>Theme park operators and related retailers are expected to grow their presence in Beijing, with some planning to use malls as a location for expansion in the city</strong>. For example, Merlin Entertainments announced plans in the quarter to open its second Peppa Pig theme park in China in Beijing, after committing to its third China Legoland Discovery Center in Beijing at Changing Paradise Walk. "The growth potential of the children's sector in Beijing makes the city an attractive place to open theme parks and expand related retail," said Queenie Qu, Head of Retail Leasing for JLL in Beijing. "Strong-performing suburban malls make sense as locations for expansion because these properties tend to have large spaces available for lease at lower rents."<br></p><p><span lang="EN-US"><strong>Industrial</strong></span><br></p><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Industrial</p></td><td class="ms-rteTable-default" style="width:50%;"><p>2Q18</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>0.5%</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>0 sqm</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>1.8% q-o-q</p></td></tr></tbody></table><p><br><strong>Third-party logistics firms and e-commerce companies continued to drive demand, although leasing activity was limited in the tight market</strong>. In the quarter, a leading domestic 3PL firm leased around 6,000 sqm in GLP Park Daxing. Few other deals were recorded in the quarter, however, given the lack of new supply and limited leasable space in the market. <br></p><p><strong>The tight-vacancy environment remained with the overall vacancy rate unchanged from the previous quarter at 0.5%, following delays from two projects</strong>. In 2Q18, two projects were expected to enter the market in Tongzhou, but were postponed due to construction delays. The overall vacancy rate (0.5%) rested at the same level recorded in 1Q18, which marked a new five-year low for the market. For a fourth straight quarter, no primary land plots for warehouses were transacted in 2Q18.<br></p><p><strong>The tight market enabled landlords to raise rents by 1.8% q-o-q to RMB 1.22 per sqm per day in the quarter</strong>. Although rental growth was flat q-o-q, rents strengthened on a y-o-y basis, reaching a five-year high of 6.5% annual growth. "Landlords continue to benefit from the tight market," said <strong>Michael Hart, Head of Industrial Leasing for North China at JLL</strong>. "Their bargaining power is expected to remain high through end-2018, particularly as leasable space in the more coveted mature areas remains scarce."<br></p><p><span lang="EN-US"><strong>High-end Residential</strong></span><br></p><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p><strong>Residential</strong></p></td><td class="ms-rteTable-default" style="width:50%;"><p><strong>2Q18</strong></p></td></tr><tr><td class="ms-rteTable-default"><p><strong>Serviced Apartments</strong><br></p></td><td class="ms-rteTable-default"><p>​</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>15.2%</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>0 units</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>1.6% q-o-q</p></td></tr><tr><td class="ms-rteTable-default"><p><strong>Luxury Apartments</strong> </p></td><td class="ms-rteTable-default"><p>​</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>0 units</p></td></tr><tr><td class="ms-rteTable-default"><p>Capital Values Growth</p></td><td class="ms-rteTable-default"><p>-1.6% q-o-q</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>1.8% q-o-q</p></td></tr><tr><td class="ms-rteTable-default"><p><strong>High-end Villas</strong></p></td><td class="ms-rteTable-default"><p>​</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>38 units</p></td></tr><tr><td class="ms-rteTable-default"><p>Capital Values Growth</p></td><td class="ms-rteTable-default"><p>3.4% q-o-q</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>0.2% q-o-q</p></td></tr></tbody></table><p><br><strong>High-end residential sales continued to be restrained by the tightening policies</strong>. Although the luxury apartment sales volume grew 44.8% q-o-q as lower prices attracted buyers, the figure was down 13.4% y-o-y due to the tightening policies that continued to restrain demand. The tight-policy environment had a similar impact on the villa market, which recorded a 62.4% q-o-q decline in the sales volume. <br></p><p><strong>No new luxury supply entered the market, as housing authorities slowed pre-sale permits and continued to push newly launched units into the mass market</strong>. Similarly, the villa market saw limited supply in the quarter; just one project was launched on the market in 2Q18. Land supply was also scarce in the quarter. Only three land plots were transacted, down significantly from 17 land plots in the previous quarter. <br></p><p><strong>Primary luxury apartment price growth remained negative for a fourth consecutive quarter, as the high-end residential price caps remained in place.</strong> In 2Q18, primary luxury apartment price growth was recorded at -1.6% q-o-q. Under stable demand and limited supply, villa prices rose 3.4% q-o-q. "Given that there are no signs of the price restrictions being lifted anytime soon, we continue to forecast negative price growth in the luxury apartment market through 2018," said <strong>Joe Zhou</strong>, <strong>Head of Research for China at JLL</strong>. "On the other hand, we can expect greater loosening in policy for the rental apartment market, after we saw housing authorities give insurance companies the green light to invest in rental housing in June." <br></p><p style="text-align:center;">​​– ends –​​<br></p><p>​​<span style="line-height:20.8px;">​</span><em style="line-height:1.6;">>>>Read more about <a href="http://www.joneslanglasalle.com.cn/china/en-gb/citymarkets/beijing" target="_blank" rel="nofollow">JLL ​Beijing Page</a><br></em><em style="line-height:1.6;">>>>Read more about </em><em style="line-height:1.6;"></em><em style="line-height:1.6;"><a target="_blank" rel="nofollow" href="http://www.joneslanglasalle.com.cn/china/en-gb/news" style="line-height:1.6;">JLL News</a>​<br></em><em style="line-height:1.6;">>>>Read more a​bout​ </em><a target="_blank" rel="nofollow" href="http://www.joneslanglasalle.com.cn/china/en-gb/research" style="line-height:1.6;"><em>JLL Research​​​</em></a><br></p><span class="ms-rteFontSize-1 ms-rteThemeForeColor-5-0"><strong><em><div><span class="ms-rteFontSize-1 ms-rteThemeForeColor-5-0"><br></span></div>About JLL</em></strong></span><p>JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with nearly 300 corporate offices, operations in over 80 countries and a global workforce of 83,500 as of March 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit <a href="http://jll.com/" target="_blank" rel="noreferrer nofollow">jll.com</a><br></p>0x0100E81015D9D08198458B498FF948D658F90052B0972AFC77B94093C478C1B5B47C88
Co-working Operators Continue to Fuel Office Demand/china/en-gb/news/664/2018q2-shanghai-real-estate-reviewCo-working Operators Continue to Fuel Office Demand<p><span style="font-size:18px;"><strong><em>​According to JLL Shanghai 2018 Second Quarter Property Review</em></strong></span></p><p><strong>Shanghai, July 10, 2018</strong> – CBD rents edged up as office leasing demand remained active. "Co-working operators' aggressive expansion as well as demand from TMT and financial services companies continued to support the overall<a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/office" target="_blank"> office market</a>," said Eddie Ng, Managing Director of JLL East China. Retail landlords are welcoming a wider range of tenants to help malls become social destinations. In the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/industrial-and-logistics" target="_blank">logistics</a> sector, strong demand from manufacturing companies contributed to the quarter's absorption. <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/residential" target="_blank">Residential</a> sales rebounded as increased supply partially released pent-up demand. <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/retail" target="_blank">Retail</a> transaction volumes remained large as investors continued to seek value-added opportunities from under-performing retail assets.</p><p><strong>Office</strong></p><p><strong>CBD landlord sentiment improves as market vacancy decreases</strong>. Grade A net absorption reached 355,000 sqm this quarter, one-third of which was in the CBD. "Co-working operators continue to expand in the CBD of both Pudong and Puxi, which keeps boosting the market. "In addition to co-working demand, TMT and financial services companies remained active in the CBD," said Anny Zhang, Head of Markets for JLL Shanghai. In the decentralized market, TMT firms and manufacturing companies were the main demand drivers, alongside expansion by co-working operators.</p><p><strong>Seven projects add 446,737 sqm. There were no new projects completed in the CBD, where vacancy declined 1.7 ppts q-o-q to 10.8%.</strong> In the decentralized market, two projects in Pudong and five projects in Puxi reached completion, and vacancy increased 2.4 ppts q-o-q to 26.1%. A few new decentralized submarkets such as Xuhui Bund, Qiantan, and Dalian Road are seeing improved leasing momentum as new projects emerge. For example, Xuhui Bund has captured strong demand from TMT companies looking to upgrade and expand.</p><p><strong>CBD rents edge up 0.5% q-o-q. After a year of rental correction, CBD rents have stabilized, rising 0.2% q-o-q in 1Q18 and 0.5% in the second quarter</strong>. Landlord sentiment improved in older Grade A projects that have refilled much of the space that was vacated as firms decentralized. In the decentralized market, rents edged up 0.7% q-o-q. Rents rose significantly in more mature submarkets such as the North Bund and Hongqiao Transportation Hub. Meanwhile, rents remained flat in newer clusters such as Qiantan where only a few projects have reached completion.</p><p><strong>Strata-titled Office</strong></p><p><strong>Strata-titled sales volume remains low. Total sales volumes reached 96,954 sqm in 2Q18, representing a 39.7% decline y-o-y</strong>. The quarter's limited transaction volume can be attributed to the limited availability of quality assets for sale as well as tighter lending policies, which have narrowed financing channels for investors and self-use buyers. The majority of 2Q18's sales volume was transacted in the Hongqiao Transportation Hub area, where stable demand allowed landlords to raise average sales prices by 1.0% q-o-q. Overall prices rose by 0.4% q-o-q. Looking ahead, we expect a large supply wave to hit the market in 2019, which should trigger more buying enquiries and boost transaction volumes in that year.</p><p><strong>Business Parks</strong></p><p><strong>Leasing momentum remains strong as TMT companies expand</strong>. Three new projects were completed in Caohejing and Zhangjiang, adding a combined 134,100 sqm to the market. Given high pre-commitment rates in the quarter's new projects, overall vacancy improved 0.8 ppts q-o-q to 13.2%.</p><p><strong>Rents continue rising. Average business park rents increased 0.8% q-o-q to RMB 4.4 per sqm per day</strong>. In particular, core business parks such as Caohejing and Zhangjiang received strong interest from TMT companies seeking space for expansion or consolidation. For example, Beijing-based tech unicorn Toutiao leased one 33,000 sqm en-bloc office building in Caohejing's SBP Phase 3 to accommodate its upgrading and expansion needs.</p><p><strong>Retail</strong></p><p><strong>Landlords continue to seek unique tenants to drive foot traffic</strong>. A Peppa Pig Indoor Theme Park operated by Merlin will open in LC Mall, highlighting the trend of new community malls drawing foot traffic with large-format children's concepts. "Culture tenants such as bookstores have joined sports and gym brands as favored tools for malls to distinguish their offerings and build loyalty with specific interest groups," said James Hawkey, Head of Retail for JLL China. Backed by investor capital, casual dining and beverage brands are occupying prime locations in major malls. Tea chain Nayuki leased significant spaces in Hongyi Plaza and Changfeng Joy City. In addition, landlords continue to sign furniture stores and specialty shops carrying multiple brands to diversify product offerings and prolong customer dwell time.</p><p><strong>One prime project and three decentralized projects deliver 234,000 sqm</strong>. The Central opened on East Nanjing Road with a sports and cultural theme. In the decentralized market, Putuo Changfeng Joy City was refurbished into a shopping and social destination targeting white-collar women and families. Greenland Being Fun Plaza opened in Zhangjiang with a focus on tech, sports, and fashion. The community mall Shenya Joy 18 Plaza debuted in Changning. Vacancy slightly increased to 10.2% in prime markets due to tenant adjustment of existing projects in East Nanjing Road and Xujiahui. Decentralized vacancy stabilized at 9.6%, as significant market absorption in Minhang and Changning was offset by increased vacancy in submarkets like Hongkou.</p><p><strong>Rental growth recovers. Prime open-market ground floor base rents increased by 1.8% y-o-y to RMB 52.0 per sqm per day</strong>. Decentralized rents rose 2.5% y-o-y to RMB 20.4 per sqm per day. Rental growth in prime areas was mostly driven by East Nanjing Road, while Minhang supported growth in the decentralized market.</p><p><strong>Logistics</strong></p><p><strong>Net absorption reaches 56,000 sqm</strong>. "East Shanghai contributed the most net absorption this quarter, as most of Shanghai's vacant space is still concentrated there," said Stuart Ross, Head of Industrial for JLL China. By contrast, West Shanghai has almost no space available for lease, contributing to its more limited absorption this quarter. 3PLs and manufacturing firms were the quarter's main demand drivers, with particularly strong leasing demand from manufacturers. For example, automobile companies leased over 10,000 sqm in GLP Park Lingang for auto parts storage.</p><p><strong>One warehouse reaches completion, ending a year-plus period of no new supply</strong>. GLP completed a 20,000 sqm built-to-suit project for an automobile manufacturer at its Lingang park. It was Shanghai's first new completion since 1Q17. The small size and built-to-suit status mean it will do little to alleviate the market's supply drought. Limited vacancy in West Shanghai forced tenants seeking larger space to look to East Shanghai instead. As a result, vacancy in East Shanghai declined from 8.1% to 5.6%.</p><p><strong>Rental growth continues to accelerate</strong>. Rents increased 1.0% q-o-q to RMB 1.36 in 2Q18, accelerating 0.3 percentage points compared to last quarter. Rents were up 3.4% in y-o-y terms, the fastest rate in four years. Increases were strong across most submarkets, with Minhang and PVG landlords achieving particularly strong increases thanks to strong demand and low or falling vacancy.</p><p><strong>Hotels</strong></p><p><strong>MICE demand drives Shanghai hotel market</strong>. Official statistics showed approximately 1.48 million overnight overseas visitors in the first quarter of 2018, a steady 0.7% climb compared to the same period in the year before. "Largely driven by MICE demand, we expect Shanghai's tourism arrivals to grow between 7% and 9% this year," said Ling Wei Tan, Vice President for Greater China with JLL's Hotels & Hospitality Group, "Hotel demand will continue its upward trend as a result." Reflecting rising MICE activity, the number of exhibitions held at the National Exhibition Convention Centre (NECC) rose to 48 compared to just 30 in 1H17.</p><p><strong>Supply surge leads to slightly reduced occupancy rates</strong>. Despite strong demand generated by increasing visitor arrivals, an influx of new supply put downward pressure on hotel occupancy. Over 55% of this year's supply pipeline was delivered in the first half of the year with notable 2Q18 openings including: Bulgari Hotel Shanghai (82 rooms), Sukhothai Shanghai (201 rooms), Middle House (111 rooms), and Anandi Hotel & Spa Shanghai (333 rooms). At end-May 2018, the occupancy rate of 5-star and 4-star hotels declined by 0.9 ppts and 0.7 ppts y-o-y respectively to 69.1% and 66.8%.</p><p><strong>Average ADRs continue rising despite slip in occupancy</strong>. Through the first five months of 2018, 5-star and 4-star hotels' average ADR increased 1.9% and 4.0% y-o-y, respectively. RevPAR grew at a slightly slower pace, recording 1.9% y-o-y growth to RMB 746 for 5-star hotels, and growth of 3.2% to RMB 411 for 4-star hotels. "New luxury hotel completions with high positioning continue to lift the market's average ADR," said Angel Chen, Vice President of Hotels for JLL Shanghai, "Additionally, with ongoing growth in tourist arrivals, 4 and 5-Star hotel ADRs are expected to continue growing through end-2018."</p><p><strong>Residential</strong></p><p><strong>Sales continue rebound with increase in supply</strong>. In the mass market, sales volumes continued to recover in 2Q18 with 12,251 units sold, rising 21% q-o-q thanks in part to an increase in supply. Although HPRs and tight mortgage conditions remained in place, new launches were well received as buyers looked to scoop up new units that were sold at below-market value, thanks to government-imposed price caps. In the high-end segment, One Sino Park on Huangpu district's riverfront and Lakeville Luxe in the Xintiandi area respectively launched 225 and 118 units. Increased supply partially released the pent-up demand, with several newly launched projects being snapped up in one day, leading to 202 high-end units sold in 2Q18, up 19% q-o-q.</p><p><strong>Primary prices remain flat while secondary prices dip</strong>. In the high-end segment, primary prices stayed largely flat as government price caps remained in place. However, secondary prices edged down another 0.1% q-o-q in 2Q18 after last quarter's price dip, as more individual landlords lowered prices to entice buyers. In the leasing market, rents held up well as leasing demand remained stable.</p><p><strong>Prices to see slight downward pressure in 2018</strong>. "Tight housing policies including price caps are expected to remain in place over the next few quarters, as local authorities continue their efforts to curb housing prices and promote market stability," said Stephenie Zhou, Head of Project Sales for JLL Shanghai. More developers are likely to speed up new launches in 2H18, due to heavier cash flow pressure amidst a tight monetary environment. We expect a moderate rebound in sales in the rest of 2018 as new launches accelerate. However, prices are likely to see downward pressure in 2H18 thanks to continued government price caps.</p><p><strong>Capital Markets</strong></p><p><strong>Higher financing costs in China lead to decline in en-bloc transaction volumes</strong>. In early 2018, China introduced a series of new restrictions on asset management, trusts, and entrusted loans, resulting in a narrower range of financing channels. Coupled with simultaneous increases in borrowing costs, these new rules left investors in a tighter financing environment than last year, resulting in a decline in en-bloc transaction activity. Total transaction volume in China decreased 48.2% y-o-y to RMB 30.0 billion in 2Q18. Shanghai was the country's top investment destination, accounting for 56.4% of the total. Total 2Q18 investment volume in Shanghai reached RMB 16.9 billion, down 50.7% y-o-y.</p><p><strong>Retail investment strong in 1H18 with total transaction volumes of RMB 7.5 billion</strong>. The retail environment benefited from a rebound in sales, particularly in the luxury goods sector. While growing online sales penetration is a rising concern, brick-and-mortar retail still accounts for more than 80% of Shanghai's total retail sales. Operators' adoption of 'new retail' strategies is helping to fend off competition from online retail and is attracting investor interest. In addition, demand for office buildings remained strong in 1H18. "Deep-pocketed investors like pension funds and sovereign wealth funds are stepping up to capture these investment opportunities," said Reeve Wang, Head of <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/investors-and-developers/capital-markets" target="_blank">Capital Markets</a> for JLL Shanghai. In May 2018, Singapore's sovereign wealth fund GIC established a partnership with NOVA to invest in China. With these investors increasing their capital allocations to China, we expect 2018 to see more large-scale en-bloc transactions, which are likely to push up commercial property investment.</p><p style="text-align:center;">​​– ends –​​<br></p><p>​​<span style="line-height:20.8px;">​</span><em style="line-height:1.6;">>>>Read more about <a href="http://www.joneslanglasalle.com.cn/china/en-gb/citymarkets/shanghai" target="_blank" rel="nofollow">JLL ​Shanghai Page</a><br></em><em style="line-height:1.6;">>>>Read more about </em><em style="line-height:1.6;"></em><em style="line-height:1.6;"><a target="_blank" rel="nofollow" href="http://www.joneslanglasalle.com.cn/china/en-gb/news" style="line-height:1.6;">JLL News</a>​<br></em><em style="line-height:1.6;">>>>Read more a​bout​ </em><a target="_blank" rel="nofollow" href="http://www.joneslanglasalle.com.cn/china/en-gb/research" style="line-height:1.6;"><em>JLL Research​​​</em></a><br></p><span class="ms-rteFontSize-1 ms-rteThemeForeColor-5-0"><strong><em><div><span class="ms-rteFontSize-1 ms-rteThemeForeColor-5-0"><br></span></div>About JLL</em></strong></span><p>JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with nearly 300 corporate offices, operations in over 80 countries and a global workforce of 83,500 as of March 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit <a href="http://jll.com/" target="_blank" rel="noreferrer nofollow">jll.com</a><br></p>0x0100E81015D9D08198458B498FF948D658F90052B0972AFC77B94093C478C1B5B47C88

 

 

Global Market Perspective/china/en-gb/research/315/global-market-perspective-3q2018Global Market PerspectiveReal Estate Markets on Track for Robust 20180x01010063443623C9F9004FA21AA8EABD6132C80096456DD4F4AF204EB9DD2C24B361B045
Asia Pacific Property Digest Q2 2018/china/en-gb/research/316/full-report-appd-q2-2018Asia Pacific Property Digest Q2 2018Markets remain resilient0x01010063443623C9F9004FA21AA8EABD6132C80096456DD4F4AF204EB9DD2C24B361B045