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Residential Property

When buying and selling residential property, we deliver value and provide peace of mind to developers, investors, corporations and individuals

​​​​​​JLL's Integrated Residential Services team offers comprehensive real estate services to develop​ers, investors and homebuyers. We focus on domestic high-end residential properties, international residential properties and mixed-use projects, providing end-to-end consulting, marketing and project sales agency services.

What we can offer

International Residential Property Services
With an extensive network of offices spanning the entire Asia Pacific region and worldwide, JLL is the market leader in the field of International Residential Property Services. We offer the premium residential property opportunities in America, UK, Australia, Portugal, Spain and France, providing related services for high-end individual residential buyers.

Understanding government policies and regulations on different property types, market trends, and marketing and transaction processes, our dedicated team provides support services including valuations, development consultancy and letting and management of overseas residential properties, from within China and through our vast global network of offices.

Our team comprises experienced real estate professionals with proven expertise across London, Manchester, New York, Washington, Chicago, Hong Kong, Singapore, Beijing, Shanghai, Chengdu, Shenzhen, Tianjin, Shenyang, etc. We capitalize on our international experience and local knowledge to provide you access to a broad range of client base and sufficient resources to market your property, help you build your property's brand and deliver real value. We can provide you with customized marketing and sales strategies aimed to target high-net-worth(HNW) buyers.

China Residential Consulting and Project Sales Agency Services
Our team is comprised of experienced real estate professionals with proven expertise, providing consultancy, marketing and project sales agency services to developers and investors. We have offices across prominent cities throughout China including Beijing, Shanghai, Chengdu and Guangzhou.

Based on our international experience and local knowledge, our dedicated residential team of professionals is ready to deliver an integrated solution that is customized to your unique needs. Our track record involves prestigious projects in 40 cities across China, including Beijing, Shanghai, Chengdu, Tianjin, Shenyang, Xi'an and Changsha, as well as in Hong Kong, Macao and Taiwan. Our roster of major clients includes top national real estate players such as Vanke, Gemdale and OCT; state-owned enterprises such as CITIC, China Resources and China North Industries Group Corporation; and international companies such as Singapore-based CapitaLand and Keppel, as well as Hong Kong-based Sun Hung Kai, Wharf Holding, Kerry Group and Shui On.
 

Residential Integrated Services

Consulting Services

  • Preplanning and Consultancy: Market study and competitor analysis, Positioning advisory, Marketing strategy, Target buyer analysis, Other preplanning-related services
  • Financial Plan: Sales phasing and payment planning, Pricing and cost analysis, Return on investment(ROI) analysis, Cost of capital and cash flow analysis
  • Marketing and Sales Consultancy: Integrated marketing strategy, Media and promotion channel strategy, Project launch and marketing strategy, Sales stage reporting

Marketing and Sales Services

  • Execution: Sales channel integration across industries and geographies, Brand promotion and property marketing, Profit maximization and price strategy development, High-net-worth individuals(HNWIs) marketing, Sales mechanism supervision and management 


To know more about JLL China Residential Property sector capability, please submit your inquiry via "Contact us" at the right navigation. ​

News and research

 

 

The Residential Index 2Q 2017/asia-pacific/en-gb/research/900/the-residential-index-2q-2017The Residential Index 2Q 2017Generally modest price gains0x01010063443623C9F9004FA21AA8EABD6132C80096456DD4F4AF204EB9DD2C24B361B045

 

 

Office rents between low and high-quality buildings diverge; vacancy rate hits four-year low in logistics market /china/en-gb/news/625/tianjin-third-quarter-real-estate-marketOffice rents between low and high-quality buildings diverge; vacancy rate hits four-year low in logistics market <p><strong style="font-size:18px;color:#262626;font-family:"segoe ui semilight", "segoe ui", segoe, tahoma, helvetica, arial, sans-serif;"><em>According to JLL Beijing's Third Quarter Property Review</em></strong></p><p><strong>Beijing, 16 October 2017</strong> – "There was a noticeable divergence in rent levels between low and high-quality <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/office" target="_blank">office</a> buildings in the quarter, as the latter group drew considerably stronger demand," said <strong>Julien Zhang</strong>, Managing Director for JLL North China.  "This enabled landlords of quality buildings to command rental premiums over others in the market." Meanwhile, in the<a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/retail" target="_blank"> retail​</a> sector, several segments within F&B drove demand, as "fresh" supermarket concepts, outdoor fine-dining offerings, and "hot" beverage retailers proved most active. Domestic and foreign investors showed strong interest in the Guanghualu Soho 2 office building up for sale in the CBD. In the logistics sector, overall vacancy reached a four-year low, as e-commerce and third-party logistics firms continued to drive steady demand. In the high-end <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/residential" target="_blank">residential</a> sales market, policy restrictions on price and the large amount of supply – resulting from government pressure on developers to launch new projects – drove sales. </p><h3><strong>Grade A Office</strong></h3><table cellspacing="0" class="ms-rteTable-default" style="width:350px;"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Office</p></td><td class="ms-rteTable-default" style="width:50%;"><p>3Q17</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>5.6%</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>0.9% q-o-q</p></td></tr></tbody></table><p><br></p><p><strong>Recent high-quality completions drove upgrade demand in the quarter, enabling tenants opportunities to expand or relocate in the market</strong>. The majority of take-up came from domestic companies, while established firm from across China continued to consider setting up offices in Beijing to extend their national footprints. "In the CBD, landlords remained interested in finance and professional services tenants with high rental affordability, as tenants from lower-margin industries eyed more affordable options in non-core submarkets or decentralised areas," said Eric Hirsch, Head of Office Leasing for JLL in Beijing. "Regardless of the area, however, landlords of quality buildings across submarkets received the most interest." </p><p><strong>Overall rents registered 0.9% q-o-q growth, supported by the strong performance of high-quality buildings and recent completions</strong>. Landlords of quality buildings drew strong interest, allowing for rental gains. Also, landlords from the majority of recent completions in the market contributed to the rise, as they managed to raise rents after achieving high occupancy levels. Four new completions from the previous quarter recorded a combined net-take up of 50,000 sqm in 3Q17. Taking into account pre-commitments, the take-up from the quarter leaves less than 20% of the space at these buildings available for lease.</p><p><strong>Completions in Lize will offer new, decentralised options</strong>. New supply over the next 12 months is expected to concentrate in the emerging decentralised office submarket. The rental flexibility of landlords will be tested as they attempt to attract tenants to the unproven area and replicate the relatively quick success of the maturing Wangjing submarket. Meanwhile, new supply in the city centre scheduled for completion in the near future could also face delays, if restrictions on commercial construction in Beijing are strictly enforced.</p><h3><strong><a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/investors-and-developers/capital-markets" target="_blank">Investments</a></strong></h3><p><strong>Beijing-based developer Soho put Guanghualu Soho 2 in the core CBD up for sale</strong>. Such opportunities in the CBD are rare, and the project has quickly received interest from multiple parties. "The open sale of this property is giving investors the chance to acquire an asset in Beijing that would otherwise be unavailable to many," said <strong>Michael Wang</strong>, Head of Capital Markets for JLL North China. "Interest from both domestic and foreign investors, particularly from institutional investors, has been huge, with many eagerly considering this opportunity."</p><p><strong>In the retail market, CapitaLand (Retail China Trust) announced the sale of CapitaMall Anzhen to Beijing Hualian Group (BHG)</strong>. CapitaLand sold its entire interest in a company holding the 43,443-sqm project outside of Beijing's North Third Ring Road for RMB 1.13 billion (for which the transaction price included, but was not limited to its interest in CapitaMall Anzhen). BHG currently operates the project as a department store under a long-term master lease.</p><h3><strong>Prime Retail</strong></h3><table cellspacing="0" class="ms-rteTable-default" style="width:350px;"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Retail </p></td><td class="ms-rteTable-default" style="width:50%;"><p>3Q17</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>6.2%</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>0.3% q-o-q</p></td></tr></tbody></table><p><span class="ms-rteFontSize-1"><em>Note: Prime Retail refers to the Urban market. *New Supply is inclusive of the Suburban market.</em></span></p><p><strong>Several segments within F&B drove demand in the quarter</strong>. Alibaba's Hema Supermarket opened its second "fresh concept" store in Beijing to drive more people to its online store. A former luxury flagship building at Taikoo Li re-opened as an outdoor fine-dining destination, tapping into peoples' growing appetites for outdoor F&B options. "Hot" milk tea retailer Hey Tea opened its first two stores in Beijing. "As competition continues to intensify, landlords remain interested in "new and fresh" F&B brands, as these tenants help drive foot traffic and further differentiate their projects in the market," said <strong>Queenie Qu</strong>, Head of Retail Leasing for JLL in Beijing. "Outside of F&B, affordable luxury retailers are also increasingly popular, due to their high sales-per-sqm ratio, while less traditional tenants, such as co-working operators and more niche fitness providers, are also being considered, as another way to help projects stay ahead of their competitors."</p><p><strong>Holding the rental trend steady, Urban and Suburban rents registered growth of 0.3% q-o-q and 0.7% q-o-q, respectively</strong>. Rents at select Core projects started reaching their rental ceilings, with at least one Wangfujing landlord reducing rents in the quarter. Suburban rental growth is expected to continue outpacing Urban growth over the next 12 months, as many quality-projects beyond the Fifth Ring Road continue to benefit from a growing number of consumers who choose to spend closer to home.</p><p><strong>End-2017 is set to be a peak supply quarter, with a significant 700,000 sqm of new supply scheduled to enter the market</strong>. Hongkong Land's WF Central along Wangfujing Pedestrian Street is the highest-profile mall expected to come online by year-end. At the same time, leasing challenges and the restrictions on commercial construction in Beijing could result in opening delays.</p><h3><strong>Industrial</strong></h3><table cellspacing="0" class="ms-rteTable-default" style="width:350px;"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Industrial</p></td><td class="ms-rteTable-default" style="width:50%;"><p>3Q17</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>1.7%</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>1.3% q-o-q</p></td></tr></tbody></table><p><br></p><p><strong>Overall vacancy reaches four-year low, driven by steady leasing demand from third-party <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/industrial-and-logistics" target="_blank">logistics </a>companies and e-commerce firms</strong>. Mature markets continued to lease out vacant space at a brisk pace. Under the steady leasing activity, and following no new supply in 3Q17, overall vacancy declined further, to just 1.7% – its lowest level since 2013. The tight market allowed landlords greater bargaining power, enabling rents to grow modestly by 1.3% q-o-q.</p><p><strong>Two projects are set to open by year-end, before new supply peaks in 2018</strong>. Both projects are expected to open in emerging areas: Fangshan District and Tongzhou Yongle Economic Zone. As these projects are expected to take longer to fill up due to their more remote locations, vacancy is expected to rise slightly, but should still remain low at end-2017. In 2018, vacancy is expected to rise modestly, with more than 300,000 sqm of new supply scheduled to come online. However, the policy restrictions on commercial construction in Beijing may also cause some of these projects to be postponed. </p><h3><strong>High-end Residential</strong></h3><table cellspacing="0" class="ms-rteTable-default" style="width:350px;"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Residential</p></td><td class="ms-rteTable-default" style="width:50%;"><p>3Q17</p></td></tr><tr><td class="ms-rteTable-default"><p><strong>Serviced Apartments</strong></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>10.0%</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>0.5% 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>826 units</p></td></tr><tr><td class="ms-rteTable-default"><p>Capital Values Growth</p></td><td class="ms-rteTable-default"><p>-2.6% q-o-q</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>0.9% 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>96 units</p></td></tr><tr><td class="ms-rteTable-default"><p>Capital Values Growth</p></td><td class="ms-rteTable-default"><p>0.3% 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></p><p><strong>In 3Q17, sales were driven by the policy restrictions on price and the large supply, as developers were urged to release projects in the market</strong>. The luxury apartment sales transaction volume was up 9.2% q-o-q, while the high-end villa sales transaction volume was flat q-o-q. Sales from a well-known luxury apartment project contributed to half of the sales volume for luxury apartments. Following increasing government pressure, developers were more active in launching projects; new luxury apartment supply surged 430% q-o-q. Seven luxury apartment projects received pre-sales certifications for 826 units, up from 192 units in the previous quarter. Many projects entered the market at much lower-than-expected prices, due to the restrictions on price that remained in place in the quarter.</p><p><strong>Under pressure from the sudden influx of new supply, luxury apartment primary capital values growth turned negative (-2.6% q-o-q) in the quarter</strong>. Many older projects lowered prices to compete with the large amount of new supply that entered the market in 3Q17. Meanwhile, primary capital values growth for high-end villas was flat q-o-q.</p><p><strong>In a bid to further limit speculation in the market and keep price growth at bay, Beijing issued measures on joint-ownership at end-3Q17</strong>. The new policy allows homebuyers to share property ownership with the municipal government. Land supply will be prioritised for this initiative, with government plans to launch 250,000 units for joint-ownership over the next five years. Housing authorities also announced plans to establish an online platform to better monitor and supervise activities in the leasing market, to better develop the leasing market and support a more stable housing market. </p><p style="text-align:center;">- ends -​</p><p><span style="line-height:1.6;"><br></span></p><em style="line-height:1.6;">>>>Read more about <a href="http://www.joneslanglasalle.com.cn/china/en-gb/citymarkets/beijing" target="_blank">JLL Beijing Page​</a></em><br><p><em style="line-height:1.6;">>>>Read more about </em><em style="line-height:1.6;"><a target="_blank" 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 about​ </em><a target="_blank" href="http://www.joneslanglasalle.com.cn/china/en-gb/research" style="line-height:1.6;"><em>JLL Research</em></a>​</p><p></p><div><br>​</div><span class="ms-rteThemeForeColor-5-0 ms-rteThemeFontFace-1" style="background-color:#ffffff;"><strong><em>About JLL</em></strong></span><p style="font-family:"helvetica neue", helvetica, arial, sans-serif;background-color:#ffffff;margin-bottom:20px !important;line-height:1.57143 !important;color:#454545 !important;"><span class="ms-rteThemeFontFace-1">JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At the end of the second quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of nearly 80,000. As of June 30, 2017, LaSalle Investment Management had $57.6 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information​​, visit </span><a target="_blank" href="http://www.joneslanglasalle.com.cn/" rel="nofollow" style="color:#006ed3;"><span class="ms-rteThemeFontFace-1">www.jll.com</span></a><span class="ms-rteThemeFontFace-1">. </span></p><p style="font-family:"helvetica neue", helvetica, arial, sans-serif;background-color:#ffffff;margin-bottom:20px !important;line-height:1.57143 !important;color:#454545 !important;"><span class="ms-rteThemeFontFace-1"></span><span class="ms-rteThemeFontFace-1">JLL has over 50 years of experience in Asia Pacific, with 36,800 employees operating in 95 offices in 16 countries across the region. The firm won the ‘World’s Best’ and ‘Best in Asia Pacific’ International Property Consultancy at the International Property Awards in 2016 and was named number one real estate investment advisory firm in Asia Pacific for the sixth consecutive year by Real Capital Analytics.​​ </span><a target="_blank" rel="nofollow" href="http://www.joneslanglasalle.com.cn/asiapacific" style="color:#006ed3;"><span class="ms-rteThemeFontFace-1">www.jll.com/asiapacific</span></a><span class="ms-rteThemeFontFace-1">  </span></p><p style="font-family:"helvetica neue", helvetica, arial, sans-serif;background-color:#ffffff;margin-bottom:20px !important;line-height:1.57143 !important;color:#454545 !important;"><span class="ms-rteThemeFontFace-1">In Greater China, the firm was named ‘Best Property Consultancy in China’ at the International Property Awards Asia Pacific 2016, and has more than 2,200 professio</span>nals and 14,000 on-site staff providing quality real estate advice and services in over 80 cities across the country​.  <a target="_blank" rel="nofollow" href="http://www.joneslanglasalle.com.cn/china/en-gb" style="color:#006ed3;"><span class="ms-rteThemeFontFace-1">www.joneslanglasalle.com.cn</span></a><span class="ms-rteThemeFontFace-1">​​​​​​​​​​​​​</span></p>0x0100E81015D9D08198458B498FF948D658F90052B0972AFC77B94093C478C1B5B47C88
While total net absorption was double the figure recorded in the previous quarter, the Tianjin office vacancy rate still increased slightly with completion in an emerging area/china/en-gb/news/624/tianjin-third-quarter-real-estate-marketWhile total net absorption was double the figure recorded in the previous quarter, the Tianjin office vacancy rate still increased slightly with completion in an emerging area<h3>​<span style="font-size:18px;"><strong><em>​​According to JLL Tianjin's 3Q17 Property Review</em></strong></span></h3><p><strong>Tianjin, 13 October 2017 </strong>– "After the opening of the first Grade A building completed in Hongqiao district, Tianjin Lujiazui Plaza, we will see a new supply wave of Grade A projects in emerging areas, that give tenants access to quality buildings across multiple submarkets in Tianjin" said <strong>Michael Hart, Managing Director of JLL Tianjin</strong>. Meanwhile, in the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/retail" target="_blank">retail</a> sector, leasing activity by the fashion, jewelry and electronics sectors picked up and the market landscape was now expanding at a slower but steadier pace after a supply influx. Leasing showed a slowdown in the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/industrial-and-logistics" target="_blank">logistics​</a> sector, where industry-leading companies were relatively quiet in seeking space. The high-end <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/residential" target="_blank">residential</a> market cooled down with lower transaction volumes and a slight decline in prices, influenced by the tightening measures of 1H17.</p><h3><strong>Office</strong></h3><p><strong>One Grade A building was completed in 3Q17, Tianjin Lujiazui Plaza Building A, which located in Hongqiao district, adding 94,725 sqm to the market</strong>. As the first newly completed Grade A project in 2017, its completion brought total Grade A stock to about 917,000 sqm, an increase of 11.5% q-o-q and 17.6% y-o-y. As this new completion entered the market with over 75% vacant space, the Grade A vacancy rate saw a slight increase of 0.2 percentage points q-o-q and a decrease of 2.7 percentage points y-o-y. No Grade B projects were completed in the quarter so Grade B stock remained unchanged at 1,893,000 sqm, enabling the Grade B vacancy rate to decrease slightly by 0.5 percentage points q-o-q and 1.9 percentage points y-o-y, to 32.1%.</p><p><strong>Total net absorption reached 55,000 sqm in 3Q17, double the amount of the previous quarter</strong>. Demand came largely from the finance sector, especially MNC non-banking financial institutions and insurance companies. For example, Home Credit, a Czech consumer finance service provider, continued to expand its business following the increasing retail sales in China and leased another 21,000 sqm in Tianjin Lujiazui Plaza Building A. It had already leased about 10,000 sqm <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/office" target="_blank">office</a> space in other office projects in Tianjin. Additionally, Metlife returned 2,000 sqm to previous landlord and leased over 5,000 sqm in Vantone Center, a Grade A project that came on stream in 3Q16. Domestic finance companies continued to play important roles in demand this quarter. Sunshine insurance expanded by another 450 sqm in Vantone Center.</p><p><strong>Net effective rents continued to decline, falling 0.5% q-o-q and 2.7% y-o-y, to RMB 92 per sqm per month on a like-for-like basis.</strong> Grade A rents fell 0.3% q-o-q and 3.4% y-o-y to RMB 103 per sqm per month. Sustained high market vacant space in the Grade A market caused landlords to lower rental expectations to find tenants to absorb it. Grade B rents declined 0.6% q-o-q and 2.3% y-o-y to RMB 87 per sqm per month.</p><p><strong>Only one more project is expected to complete in 2017, and this will add around 52,000 sqm with a vacancy rate expected to be little changed at 37.4%</strong>. On September 1 2017, the Tianjin Environmental Protection Bureau officially announced that, in a bid to improve air quality in winter, almost all major public construction projects within Tianjin's six major districts and surrounding suburbs will be halted from October to March. "Some projects due for completion in 2017 and 1Q18 have been delayed by the restrictions but it is a competitive environment with many large-sized completed projects left with large amounts of vacant space. It is expected that landlords will continue to lower rents to absorb vacant space over the next year", noted <strong>Weiran Lv, Head of Markets for JLL Tianjin.</strong></p><h3><strong>Logistics</strong></h3><p><strong>Industry-leading companies were relatively quiet in seeking space in the non-bonded market during 3Q17</strong>. New leasing demand slowed in the non-bonded market, although there were some small deals by third party logistics (3PL) companies. A domestic 3PL company, leased 3,000 sqm in GLP Park Pujin Phase II. Total net absorption was negative at about -21,000 sqm, as leasing volume slowed and the market witnessed tenants handing back more than 24,000 sqm. A Japanese logistics services provider, returned 20,000 sqm to the market.</p><p><strong>Two new projects, GLP Park Beichen Phase II and Zhongchu Beichen Logistics Centre Phase I, entered the market in the Beichen sub-market</strong>, adding 88,000 sqm of space to the market. Due to relatively slow leasing progress during the quarter in both existing projects and new supply, the non-bonded market vacancy rate rose 3.5 percentage points q-o-q and 2.8 percentage points y-o-y to 21.8%.</p><p><strong>As rents for existing projects were unchanged due to slow leasing progress, net effective rents remained stable at RMB 0.92 per sqm per day on a like-for-like basis.</strong></p><p>By end-2017, five new warehouse projects are expected to complete in five different sub-markets, adding a total of around 196,000 sqm. "E-commerce, retail and 3PL companies will remain the major market drivers and are especially active at year-end, when large e-commerce firms, such as JD.com, hold promotional activity for 'Double 11' in November. This will trigger short-term leasing demand from e-commerce and supporting 3PL companies", noted <strong>William Gao, Head of Industrial for JLL Tianjin</strong>. While the leasing demand will be moderate, a large amount of new supply will push the vacancy rate up by 4.1 percentage points y-o-y to 23.7% by end-2017. The relatively competitive non-bonded warehouse market will limit rent growth. We expect slower rent growth, down from our previous forecast of 1.4% y-o-y to 0.9% y-o-y on a like-for-like basis by end-2017.</p><h3><strong>Retail</strong></h3><p><strong>New leasing demand kept stable, with net absorption reaching 61,608 sqm, a decrease of 67.3% q-o-q but an increase of 101.8% y-o-y</strong>. As no new supply entered the market in 3Q17, all new leases came from the existing projects during active tenant adjustment in several malls, such as Joy City Nankai and Riverside 66. For example, Xiaomi leased about 300 sqm and Lego leased about 200 sqm to fill the empty space after Gap closed its store in Joy City Nankai. A new Mjstyle occupied about 500 sqm to replace another Gap in Riverside 66. Leasing demand saw a large variety in terms of retail sectors. In addition to the traditional hot sectors, such as F&B and child-related brands, the jewellery, apparel and electronics sectors also saw active expansion.</p><p><strong>No new mall opened in 3Q17; however, one mid-to-high-end department store, Youyi Department West Wing, closed in the Youyi submarket</strong>. Because of this, total stock of high-quality retail market space shrank by 21,000 sqm to 4.0 million sqm. A lack of public space, old interior decoration and facilities, as well as a lack of tenant mix adjustment may be the main reasons for the underperformance before the closure. "The closure reminded retail developers and operators that they are in an increasingly competitive market with more savvy shoppers," noted <strong>Sunny Yin, Head of Retail for JLL Tianjin.</strong> </p><p><strong>The market average vacancy rate dropped for the third consecutive quarter to 12.3%,</strong> a decrease of 1.6 percentage points q-o-q and 2.0 percentage points y-o-y, due to the modest leasing demand.</p><p><strong>Net effective rent rose to RMB 11.6 per sqm per day, an increase of 1.2% q-o-q and 2.9% y-o-y on a like-for-like basis</strong>. Mature shopping malls with tight vacancy rates in both the core area and communities, such as Joy City Nankai and Aeon Shopping Centre (Meijiang), were the main contributors to the rising average rent.</p><p><strong>Looking forward, two new retail properties are expected to enter the market by end-2017, adding 56,000 sqm of shopping space</strong>. We forecast that leasing demand will likely continue to be robust, as several fashion and jewellery brands have committed to space in the main retail malls, such as Riverside 66 and Joy City Nankai. Benefiting from growing leasing demand and a decelerating supply pipeline, we forecast the overall vacancy rate will keep declining by 11.8% and, accordingly, rent will grow mildly. </p><h3><strong>High-end Residential</strong></h3><p><strong>The tightening measures that took effect in 2Q17 largely curbed the 3Q17 transaction volume, by restricting housing demand, especially from buyers aiming to upgrade or invest</strong>. In addition, several banks raised mortgage rates by 10%, even for first-time buyers, which made purchasing a house more difficult. As a result, only 607 high-end apartment units were sold in 3Q17, down 15.1% q-o-q and 77.7% y-o-y.</p><p><strong>A total of 680 units were launched in 3Q17, a slight decrease of 8.2% q-o-q and a decrease of 67.6% y-o-y</strong>. The new Badali and Meijiang submarkets were the only two submarkets with new launches. These mainly came from Tianjin Lake and Vanke Dongdi Meijiang.</p><p>Capital values in the high-end residential market declined moderately, dropping 10.1% q-o-q but rising 8.9% y-o-y in line with the limited transaction volume and decreasing sales rate. Most of the new projects are located relatively far from the city centre. As a result, projects launched at competitive prices attracted price-sensitive first-time buyers, who were the main contributors to the sales transaction volume. For example, 224 new units of Vanke Dongdi Meijiang High-rise sold at an average price of RMB 28,000 after being launched in the quarter.</p><p><strong>Chelsea Cai, Head of Research for JLL Tianjin</strong>, commented that "in a bid to cool the housing market, several main cities have announced policies to support the leasing market; the Tianjin Government is expected to follow soon". We forecast both demand and supply will slow, following the introduction of the potential policy changes. Capital values of high-end housing will likely stop rising from 3Q17 and are forecast to remain stable by end-2017.</p><p style="text-align:center;">- ends -​</p><p><span style="line-height:1.6;"><br></span></p><em style="line-height:1.6;">>>>Read more about <a href="http://www.joneslanglasalle.com.cn/china/en-gb/citymarkets/tianjin" target="_blank">JLL Tianjin Page​</a></em><br><p><em style="line-height:1.6;">>>>Read more about </em><em style="line-height:1.6;"><a target="_blank" 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 about​ </em><a target="_blank" href="http://www.joneslanglasalle.com.cn/china/en-gb/research" style="line-height:1.6;"><em>JLL Research</em></a>​</p><p></p><div><br>​</div><span class="ms-rteThemeForeColor-5-0 ms-rteThemeFontFace-1" style="background-color:#ffffff;"><strong><em>About JLL</em></strong></span><p style="font-family:"helvetica neue", helvetica, arial, sans-serif;background-color:#ffffff;margin-bottom:20px !important;line-height:1.57143 !important;color:#454545 !important;"><span class="ms-rteThemeFontFace-1">JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. 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