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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

 

 

The logistics market vacancy rate reached a nine-year low; talents attraction plan pushes up demand in Tianjin housing market/china/en-gb/news/665/2018q2-tianjin-real-estate-reviewThe logistics market vacancy rate reached a nine-year low; talents attraction plan pushes up demand in Tianjin housing market<p><span style="font-size:18px;"><strong><em>​According to JLL Tianjin's 2Q18 Property Review</em></strong></span></p><p><strong>Tianjin, 12 July 2018</strong> – "Thanks to its well-developed road connection in the Jing-Jin-Ji area, Tianjin's logistics market continues to benefit from China's ongoing e-commerce boom", said Michael Hart, Managing Director of JLL Tianjin. In 2Q18, two Grade A <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/office" target="_blank">office</a> buildings, China Overseas Plaza and Lujiazui Financial Plaza B, completed in the emerging area, adding 153,000 sqm into the market. As of 2018, the number of Grade A office buildings in downtown Tianjin reached 15 with 1.1 million of GFA.  Meanwhile, in the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/retail" target="_blank">retail</a> sector, one retail project, Tianjin CRCC Mall I, located in Hebei district opened in non-core retail area as a community mall along Metro Line 6, expanding the retail landscape in Hebei District. Following the same pattern as other tier 2 cities, Tianjin's new talent attraction plan drove the housing demand for both local and non-local residents in the short term.</p><p><strong>Office</strong></p><p><strong>Demand continues to stem from domestic financial services companies, a sector that accounted for 35% of the quarter's transaction volume</strong>. Notable transactions included Taiping Life Insurance, a domestic insurer, leasing 4,900 sqm in Metropolitan Plaza. Zhongli, a local fund company, leasing 2,000 sqm in Maoye Plaza. Recent high-quality completions such as Lujiazui Financial Plaza, China Overseas Plaza, and Sino Ocean International Center, in the emerging areas continued to help drive demand from cost-sensitive sectors, such as information technology (IT), shipping and logistics, and trading companies, in the quarter, enabling these tenants opportunities to expand or relocate. For instance, Ehomesoft, a domestic IT company, moved out from an industrial park and leased 370 sqm in China Overseas Plaza in Hexi district, one Grade A project completed in 2Q18.</p><p><strong>Two Grade A buildings, China Overseas Plaza and Tianjin Lujiazui Financial Plaza B, were completed in 2Q18, adding 153,000 sqm to the market, helping Grade A stock reach 1.1 million</strong>. The Grade A vacancy rate increased 5.3 percentage points q-o-q and 1.3 percentage points y-o-y to 49.5% due to the large-size supply, while the Grade B vacancy fell 0.3 percentage points q-o-q and 1.5 percentage point y-o-y to 31.1% as no new project entered the market this quarter.</p><p><strong>Overall rents edged down slightly in 2Q18, falling 0.1% q-o-q and 1.2% y-o-y, to RMB 91.8 per sqm per month, as landlords in both core CBD area and emerging areas remaining flexible on rent options in this tenant favorable market</strong>. Grade A's rent saw a slight decrease of 0.1% q-o-q and 0.8% y-o-y to RMB 102.0 per sqm per month.</p><p><strong>Seven more projects with a total GFA of around 420,000 sqm are expected to enter the market by 2018</strong>. New supply over the next half year is expected to concentrate in the emerging office submarket, such as New Badali. "With occupancy increasing on Nanjing Road-Xiaobailou submarket, we expect to see landlords phasing out rental discounts", Lv Weiran, Head of Markets for JLL Tianjin noted, "Cheaper rents will be available in emerging areas such as New Badali." </p><p><span lang="EN-US"><strong>Logistics</strong></span></p><p><strong>Demand continued to be robust in Tianjin non-bonded logistics market, resulting in net absorption of 320,500 sqm, an increase of 55.9% q-o-q and 2.5 times y-o-y</strong>. Large e-commerce players and supporting 3PL companies, followed by manufacturers, continued to be the most active in looking to expand their presence in Tianjin. Wuqing and Beichen remained popular, but absorption was greatest in emerging submarkets like Jinnan and Xiqing, where the city's vacant space is concentrated. For example, a Beijing-based 3PL company leased out Ping'an <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/industrial-and-logistics" target="_blank">Logistics</a> Project I (102,000 sqm) in Jinnan at its opening. In addition, a Shanghai-based power train products manufacturer leased around 20,000 sqm in GLP Pujia Logistics Park.</p><p><strong>One new completion, Ping'an Logistics Project I, entered the market in 2Q18 with a 100% commitment rate, adding 102,000 sqm of space to the non-bonded market</strong>. Coupled with strong demand, the vacancy rate of the non-bonded market plummeted 7.5 percentage points q-o-q and 12.9 percentage points y-o-y to 5.4% as of end-2Q18 – a new nine-year low.</p><p><strong>Rents saw a significant increase of 2.1% q-o-q and 4.8% y-o-y to RMB 0.96 per sqm per day</strong>. Landlords in the prime locations of Wuqing and Beichen took advantage of strong pricing power due to tight vacancy rates; Xiqing also witnessed rental increase of 2.8% q-o-q and 7.0% y-o-y as it is the most active submarket in taking spillover demand from prime locations. </p><p><strong>Another six non-bonded projects with a total GFA of 335,700 sqm are expected to enter the market through end-2018</strong>. William Gao, Head of Industrial for JLL Tianjin commented, "Key demand drivers are e-commerce firms and 3PLs, which are likely to continue to benefit from the growth of China's e-commerce industry. We forecast that the demand in Wuqing, Beichen and Xiqing continuing to be strong, helping rents growth in a faster pace in 2018."</p><p><strong>Retail</strong></p><p><strong>In the competitive retail environment, several retail projects were undergoing tenant mix adjustment resulting in slow leasing demand growth in 2Q18</strong>. For example, R&F Square is changing tenant mix by adding more children's education brands and Robbinz Department Store is adjusting basement to focus on F&B sector. </p><p><strong>Net absorption during the quarter saw a slight slowdown, totalling 39,700 sqm, a decline of 89.8% q-o-q and 78.9% y-o-y</strong>. Demand was mainly driven by children's brands, electronics, and fashion brands. Tomato Art School, an art education centre for children, opened four new stores in shopping malls, including Delight City and Metropolitan Plaza. Electronics brands leased small space in both mega malls and community malls. Also, several international fashion brands debuted in major retail locations in Tianjin. For example, Pleats Please, a Japanese clothing store, opened a 300 sqm store in Isetan along Nanjing Road, and American brand Champion and Italian streetwear brand Off-White also entered Tianjin during 2Q18 in core retail areas. "International brands remain interested in entering mature projects in key retail locations as the purchasing power of young shoppers is growing," said Sunny Yin, Head of Retail, JLL Tianjin.</p><p><strong>A small-size community mall — Tianjin CRCC Mall I — came on stream in 2Q18, adding 45,000 sqm of retail space in the non-core retail area of Hebei District.</strong> As a retail podium of an office building and a residential apartment building, the mall features mid-range F&B, household and services tenants to cater to the daily needs of the area's residents and office workers. With high accessibility to Metro Line 6 and proximity to a high-density residential area, the mall has enjoyed relatively high foot traffic since it opened. Demand and new supply increased at a similar pace in 2Q18, leaving the market's overall vacancy rate at 9.8%, unchanged q-o-q and a decrease of 2.4 ppts y-o-y.</p><p><strong>With the vacancy rate stable, rents increased slightly, up 0.5% q-o-q and 3.2% y-o-y, to RMB 11.6 per sqm per day</strong>. The higher rents came primarily from mature malls with tight vacancy rates, while rents were largely unchanged in a few underperforming malls located near strong competitors.</p><p><strong>Looking ahead, two new malls are expected to enter the market in the second half of the year, adding 169,000 sqm of space</strong>. L+ Mall and Tianjin Poly Plaza are both high quality shopping malls from experienced developers. The two malls are expected to open with comprehensive tenant mixes and bring new brands such as Duozoulu and Ella Supermarket into central Tianjin. Once they come on stream, competition in key submarkets is forecast to intensify, providing more shopping choices for local residents.</p><p><strong>High-end Residential</strong></p><p><strong>In 2Q18, Tianjin's residential market was stimulated by two local government policies designed to attract educated and skilled talents</strong>. Starting 1 April, non-local eligible residents may apply for a Hukou based on the apartment they rent. On 16 May, the government rolled out a talent attraction plan that lowered threshold requirements for newcomers. The rule changes helped boost non-local residents' housing demand, which was also supported by pent-up demand from local residents, although housing restrictions remained in effect. As a result, high-end <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/residential" target="_blank">residential</a> transactions in April and May stood at 355 units, an increase of 32.5% from 1Q18 and 50.3% higher than 2Q17.</p><p><strong>A total of 759 new high-end residential units launched in the quarter, an increase of 20.3% q-o-q and 2.4% y-o-y</strong>. Most of the new units were in existing projects in mature residential submarkets, namely Meijiang, Water Park and Haihe Riverside submarkets. For example, Wellington Sea Garden Building launched four new buildings, bringing 327 new units to the market. </p><p><strong>Transaction volume grew more slowly than new supply, pushing up inventory levels</strong>. As a result, the average price of high-end residential in April and May saw a slight decline of 3.1% q-o-q and 8.9% y-o-y. However, market sentiment should improve in light of the new policies, and transaction volumes are expected to rise by end-2Q18.</p><p>"The new talent attraction plan should help speed up Tianjin's economic transition, which will improve Tianjin's economics fundamentals," said <strong>Chelsea Cai, Head of Research at JLL Tianjin</strong>. "In the end, we foresee housing demand returning to a more rational level, which should slow the pace of housing price increases." </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/tianjin" target="_blank" rel="nofollow">JLL ​Tianjin 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