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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

 

 

IT leasing demand surpassed that of finance firms for the first time; stricter housing loans policy to restrain ‘rigid demand’/china/en-gb/news/673/2018q3-beijing-real-estate-reviewIT leasing demand surpassed that of finance firms for the first time; stricter housing loans policy to restrain ‘rigid demand’<p>​<span style="font-size:18px;"><strong><em>According to JLL Beijing's Third Quarter Property Market Review</em></strong></span></p><p><strong>Beijing, 15 October 2018</strong> – "CBD Core Area project delays helped to keep the overall <a href="https://www.dichandadang.com/en" target="_blank">office</a> vacancy rate low, pushing up office rents citywide." said <strong>Julien Zhang, Managing Director for JLL North China</strong>. In the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/retail" target="_blank">retail</a> sector, fitness and related retailers proved popular as consumers increasingly seek healthy and active lifestyles. The tightening monetary environment may lead developers to put more assets up for sale on the market in the coming months. <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/industrial-and-logistics" target="_blank">Industrial</a> leasing activity was restrained by a lack of available space, driving rental growth to soar to a record high in the quarter. Luxury apartment prices continued to record negative growth under the tight-policy environment. Two new upscale <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/hotels-hospitality" target="_blank">hotels</a> opened, expanding supply to the suburban areas. </p><h3><span lang="EN-US"><strong>Grade A Office</strong> </span></h3><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Office</p></td><td class="ms-rteTable-default" style="width:50%;"><p>3Q18</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>3.2%</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>45,800 sqm</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>1.5% q-o-q</p></td></tr></tbody></table><p><span lang="EN-US"> </span></p><p><strong>IT companies were very active and served as the dominant source of leasing demand in the quarter</strong>. Although finance firms remained a major source of demand in the quarter, IT demand surpassed that of finance firms; an IT giant quickly absorbing space returned by a start-up forced to reconsider its business plan. Some landlords also leveraged interest from funds with high rental affordability to increase rents.</p><p><strong>One small project came online, adding some 45,800 sqm of new supply to the market</strong>. Near the centre of Beijing, COFCO Landmark opened in Ditan, attracting demand from nearby office submarkets, as tenants were attracted to the central location for relocation, expansion, or upgrade purposes. Leasing was off to a strong start, with an environmental firm taking up a sizeable space at the project.</p><p><strong>For a second consecutive quarter, rents climbed across all submarkets in the tight market</strong>. Third Embassy, Zhongguancun, and Wangjing led the rise, as IT and finance tenants chased available space in these areas. "The lack of available office space throughout the city helped landlords continue to benefit from rental increases in the quarter," said <strong>Eric Hirsch, Head of Office Leasing for JLL in Beijing</strong>. "Due to the tight market, landlords were more selective about tenants, pursuing the highest-quality tenants. Also, as the CBD Core Area projects experience further delays, we expect landlords to continue enjoying strong bargaining power for the remainder of the year, particularly as quality space in mature areas continues to be limited."</p><h3><strong>Capital Markets</strong></h3><p><strong></strong>In the quarter, several deals were said to be under negotiation. "The tighter monetary environment could lead more projects to surface on the market," said <strong>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</strong>. "The situation is likely to see the gap between buyers and sellers' pricing expectations narrow, and this is expected to lead more office assets to switch hands over the next several months."</p><p><strong>Investor interest in the office sector is expected to remain the strongest through end-2018 and into 2019</strong>. Due to high rents and the low-vacancy environment, the office market remained highly popular with investors in the quarter. As a result, domestic and foreign investors continued to comb the market for opportunities in the office market. Also in the quarter, experienced investors from other sectors such as retail were still interested in acquiring suitable assets.</p><h3><strong>Prime Retail</strong><br></h3><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>3Q18</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>6.1%</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply*</p></td><td class="ms-rteTable-default"><p>136,000 sqm</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>0.4% q-o-q</p></td></tr></tbody></table><p><em class="ms-rteThemeForeColor-3-3">Note: Prime Retail refers to the Urban market. *New Supply is inclusive of the Suburban market. </em></p><p><strong>Fitness demand remained strong as home accessories continued to expand in the quarter</strong>. Hong Kong-based Pure Yoga opened its first location in Beijing at WF Central in Wangfujing. Fitness studio openings such as Super Monkey and Lefit continued to differentiate from traditionally popular gyms. Online fitness retailers also focused on raising visibility in the market, with fitness app Keep committing to space at a number of prime malls. In the lifestyle category, home accessories retailers such as Nome and M&G Shop were active in the quarter, opening new locations around the city. "Consumers are increasingly seeking balanced lifestyles, and this is placing a greater emphasis on their efforts to be healthy and live more comfortably," said <strong>Zoe Yang, Head of Retail Tenant Representation for JLL in Beijing</strong>. "This has allowed fitness retailers and lifestyle segments to flourish, especially as a greater number of people benefit from higher disposable incomes for spending. While gyms and fitness studios tap into growing demand for more active lifestyles, home accessories retailers have done well to sell products that provide a more pleasant or relaxing home environment."</p><p><strong>One new, large mall opened in the quarter, introducing 120 new brands to suburban Fangshan</strong>. Paradise Walk Fangshan opened fully committed and occupied on opening day, marking Longfor's third Paradise Walk project in Beijing. Targeting the mid-market in southwestern Beijing, the project anchors new retail supermarket Super Species and includes other new-to-market brands for Fangshan such as Bouthentique and Nike's Kicks Lounge. The mall is expected to benefit from its wide tenant mix, which offers nearby residents several F&B choices across segments, including fast-food chains, casual dining as well as plenty of coffee, tea, and dessert options to feed into increasing demand for F&B leisure concepts.</p><h3><strong>Industrial</strong></h3><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>3Q18</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>6.0% q-o-q</p></td></tr></tbody></table><p><br><strong>The extremely tight-vacancy market led to another quiet leasing quarter</strong>. Demand continued to be strong, but since most transactions were renewals negotiated directly with landlords, we observed limited deals in the quarter. Once again, the number of new leases or opportunities for expansion in the quarter remained low, as almost all quality warehouse space across Beijing continued to be fully occupied. The scarcity of available space coupled with the lack of new supply in the market led to zero net absorption being recorded in the quarter.</p><p><strong>The extremely limited availability of space in the market drove rents to register 6.0% q-o-q growth in the quarter, a record high since JLL began tracking the market in 2004</strong>. The rise led net effective rents to soar to 1.29 RMB per sqm per day. The tight market led the overall vacancy rate to stay at its five-year low (0.5%), after a sixth consecutive quarter without new supply. "Rents have been soaring in the extremely tight market in recent quarters, and without signs of this growth momentum slowing anytime soon, we can expect the trend to continue through end-2018," said <strong>Michael Hart, Head of Industrial Leasing for North China at JLL</strong>. "Looking ahead, as demand remains steady and space limited, we are likely to see landlords continuing to benefit from strong rental gains well into 2019."</p><h3><strong>High-end Residential</strong><br></h3><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Residential</p></td><td class="ms-rteTable-default" style="width:50%;"><p>2Q18</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>10.2%</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>102 units</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>1.0% 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>440 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>2.3% 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>55 units</p></td></tr><tr><td class="ms-rteTable-default"><p>Capital Values Growth</p></td><td class="ms-rteTable-default"><p>-2.3% 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><strong><a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/residential" target="_blank">High-end residential</a> sales volumes continued to be restrained by the tight-policy environment</strong>. As price caps remained in place, the luxury apartment volume increased 14.9% q-o-q, but continued to record negative y-o-y growth (-8.9%). Following a similar trend, high-end villa sales were also up, rising 12.8% q-o-q, but the figure was still down significantly y-o-y (-83.0%).</p><p><strong>While price restrictions have led developers to hold back supply in recent quarters, many launched new projects in the quarter</strong>. A total of 440 luxury apartment units were released in the quarter, after no new luxury supply entered the market in the previous quarter. In the high-end villa market, 55 units were released over the same period, up 44.7% from the previous quarter. Some developers have come under greater financial pressure given the tighter monetary environment, prompting them to launch new projects even as the price caps continue to be in place.</p><p><strong>Primary prices for luxury apartments continued to record negative growth, as some developers further lowered prices to increase sales</strong>. This drove luxury apartment prices to further decline, recording negative q-o-q growth (-2.6%) in the quarter. High-end villa prices also declined by -2.3% q-o-q in the quarter. "As financial pressure heightens for developers, we expect to see more projects launched on the market in the coming months," said <strong>Mi Yang, Acting Head of Research for Beijing at JLL</strong>. "In the mass market, stricter loans policy is expected to hold back 'rigid demand,' and this could lead more would-be buyers to the leasing market."</p><h3><strong>Hotels</strong></h3><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Hotels*</p></td><td class="ms-rteTable-default" style="width:50%;"><p>YTD August 2018</p></td></tr><tr><td class="ms-rteTable-default"><p>Occupancy</p></td><td class="ms-rteTable-default"><p>76%</p></td></tr><tr><td class="ms-rteTable-default"><p>ADR**</p></td><td class="ms-rteTable-default"><p>1,103.7</p></td></tr><tr><td class="ms-rteTable-default"><p>RevPAR</p></td><td class="ms-rteTable-default"><p>838.9</p></td></tr></tbody></table><p><em class="ms-rteThemeForeColor-3-3">Note: Hotels refers to the upscale hotel market. **ADR inclusive of service charge.</em> </p><p><strong>Coupled with moderate new supply, a recovery in international tourist arrivals and large events hosted in Beijing, such as the Forum on China-Africa Cooperation, benefited upscale hotels' trading performance in the quarter</strong>. As at YTD August 2018, occupancy increased by 3.4 percentage points to 76%, pushing the Average Daily Rate (ADR) up 8.0% y-o-y to RMB 1,103.7. Rapid growth of the ADR drove the RevPAR to increase sharply by 13% y-o-y to RMB 838.9 – sustaining the YTD double-digit growth figure recorded since the start of 2018.</p><p><strong>Two upscale hotels opened in the quarter, adding 773 rooms to the market and expanding supply to the suburban areas</strong>. In northeast Beijing, Hyatt Regency Hotel Wangjing (348 rooms) opened, and in the northwest of the city, Beijing Marriot Hotel Changping (424 rooms) entered the market. The openings follow that of Muji Hotel Beijing in tourist precinct Qianmen, which opened in June, marking the first new upscale hotel opening for Beijing in 2018 and the Japanese brand's second hotel in China.<br></p><p><strong>New supply in Beijing will be concentrated in Wangfujing at the end of the year, as two new luxury hotels are set to add 200 rooms to the popular tourist area</strong>. Mandarin Oriental Hotel Wangfujing (74 rooms) features a high-profile location along the pedestrianised Wangfujing shopping street, while Puxuan Hotel (116 rooms) will serve as the third property in China for Urban Resort Concepts, after Shanghai and Xiamen. "In Wangfujing,  the recently opened Guardian Art Centre and WF Central mall have helped to upgrade this traditional retail submarket, developing it into an art, culture, and retail destination," said <strong>Adela Zu, Vice President of Hotels & Hospitality for JLL in Beijing</strong>. "The prestigious Mandarin Oriental and Puxuan hotels are expected to further transform the area and attract more high-end leisure and business travelers, which will continue to drive trading performance for upscale hotels in Wangfujing."</p><p style="text-align:center;">​​– ends –​​<br></p><p>​​<span style="line-height:20.8px;">​</span><em style="line-height:1.6;"></em></p><em style="line-height:1.6;"></em><p><em style="line-height:1.6;">​​<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">JLL ​Beijing Page</a><br></em>>>>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>​​<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 style="text-align:justify;">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 86,000 as of June 30, 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
Puxi CBD Rents Accelerate as Vacancy Falls/china/en-gb/news/671/puxi-rental-market-researchPuxi CBD Rents Accelerate as Vacancy Falls<p> <strong style="font-size:16px;"><em>​According to JLL Shanghai 2018 Third Quarter Property Review</em></strong></p><p style="text-align:justify;"> <strong>Shanghai, Oct 12, 2018</strong> – Financial services, TMT, and coworking firms continued to be the main drivers of office demand. "Rental growth grew in the Puxi CBD as leasing demand improved and vacancy fell," said<strong> Eddie Ng, Managing Director for JLL East China.</strong> In the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/retail" target="_blank">retail</a> sector, consumption upgrading continued led to further diversification in demand, with 'new retail' concepts, electric car brands, and more business casual fashion all contributing to leasing. The <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/residential" target="_blank">residential </a>market saw sales continue to recover as new supply increased. In the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/industrial-and-logistics" target="_blank">logistics</a> sector, net absorption rose as three new projects were completed.<br></p><h3> <strong>Office</strong></h3><p style="text-align:justify;"> <strong>Financial services, TMT, and coworking firms lead demand. </strong>In the Pudong CBD, asset management firms and insurance brokerages were active. Encouraged by financial opening-up reforms, foreign banks also started looking to upgrade from representative offices to branch <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/office" target="_blank">offices</a>, and sought spaces for expansion. In the Puxi CBD, coworking operators continued to seek space for expansion, while developers also invested in their own coworking brands. In addition to asset management firms and professional services firms, retail brands also looked for expansion space in the Puxi CBD. The decentralised market continued to see strong leasing momentum, and tech and media companies continued to look for upgrade and expansion opportunities. "While new supply volume remains high across decentralised submarkets, we saw strong performance from newly formed submarkets with strong positioning and industry targeting," said<strong> Anny Zhang, Head of Markets for JLL Shanghai.</strong></p><p style="text-align:justify;"> <strong>Three projects add 203,000 sqm to the Grade A market.</strong> This quarter saw completions of Taikang Insurance Tower in the Pudong CBD, ITC Phase 2 T1 in the Puxi CBD, and World Trade Centre Phase 3 in Pudong's decentralised market. Pudong CBD vacancy increased 0.6 ppts q-o-q to 11.1%. Puxi CBD vacancy improved 2.2 ppts q-o-q to 8.7%. Grade A buildings there that had lost tenants to decentralization have gradually attracted new occupants. Decentralised market vacancy improved 2.2 ppt to 23.9% as new buildings continued to attract upgraders.</p><p style="text-align:justify;"> <strong>Rents strengthen in the Puxi CBD as vacancy improves. </strong>Falling vacancy has boosted sentiment for Puxi CBD landlords, allowing rents there to increase 1.2% q-o-q to RMB 9.7 per sqm per day. In the Pudong CBD, rents increased by a moderate 0.5% q-o-q. In the decentralised market, continued large supply acted to constrain rental growth to moderate levels. Stable rents in the CBD have caused rental growth in fringe CBDs to slow, while a few emerging submarkets with strong positioning outperformed.</p><h3> <strong>Strata-titled Office</strong></h3><p style="text-align:justify;"> <strong>Strata-titled sales volume recover as new projects enter the market</strong>. After six quarters of limited supply, six projects totaling 203,642 sqm were completed this quarter. Total sales volumes recovered to 164,799 sqm in 3Q18, representing a 161% increase y-o-y and a 70% increase q-o-q. The majority of 3Q18's sales volume remained concentrated in the Hongqiao Transportation Hub, as the area is home to high quality salable projects and enjoys an improving business environment and retail amenities. Domestic manufacturing companies – particularly firms based in the Yangtze River Delta area – often prioritize locations in Hongqiao Transportation Hub due to its easy access to high-speed rail. Demand remained stable in the rest of the market. Overall prices rose by 0.5% q-o-q. Looking ahead, supply is expected to remain large, which should lead to more buying enquiries and boost transaction volumes.</p><h3> <strong>Business Parks</strong></h3><p style="text-align:justify;"> <strong>Diversified demand drives net absorption in the core business park market. </strong>Five new projects with a total GFA of 282,000 sqm were completed in 3Q18. Despite the large amount of new supply, strong demand helped reduce overall vacancy by 1.1 ppts q-o-q to 12.1%. Companies in the TMT, pharmaceutical and healthcare sectors continued to seek space for expansion. For example, audio streaming firm Ximalaya leased around 26,000 sqm in Zhangjiang Jianteng to accommodate its expansion requirements, and pharmaceutical research firm Covance secured over 7,000 sqm in A-Land in Zhangjiang. In addition, coworking operators continued to expand in the business park market. For example, Kr Space leased around 6,000 sqm in SBP and WeWork added a new center of 7,000 sqm in Candor Plaza.</p><p style="text-align:justify;"> <strong>Rents continue to edge up.</strong> Overall business park rents slightly increased by 0.3% q-o-q, reaching RMB 4.4 per sqm per day as recently-completed projects saw strong progress and started to increase rents. Given strong leasing momentum and improving accessibility, several landlords in Caohejing and Zhangjiang raised their rental expectations.</p><h3> <strong>Retail</strong></h3><p style="text-align:justify;"> <strong>Retailers are adapting to upgraded consumer expectations and changing workplace dress codes. </strong>Integration between e-commerce and malls continued this quarter, as more online-to-offline multi-brand stores opened to extend their shopping experiences to brick-and-mortar spaces. "In addition, many companies are making office dress codes more casual, resulting in strong demand for business-casual clothing and sportswear brands," said<strong> Ellen Wei, Head of Retail for JLL Shanghai.</strong> Leasing demand from electric car brands has risen, with consumer interest in such vehicles growing in response to lower tariffs and anticipation of license plate quotas on most electric cars.</p><p style="text-align:justify;"> <strong>Five prime and five decentralized projects deliver 569,900 sqm. </strong>Most of the quarter's new completions were community malls with large shares of F&B and lifestyle tenants targeted at nearby families. Meanwhile, LuOne included more fashion retail to serve its catchment area, which has a bigger population and greater purchasing power. Shanghai Shimao Festival City completed its refurbishment and opened at the end of this quarter. Vacancy in prime markets slightly increased from 10.2% to 10.6% as some new projects opened with higher-than-average vacancy. Vacancy slightly decreased from 9.6% to 9.3% in decentralized areas due to significant market absorption in Putuo and New Jiangwan City.</p><p style="text-align:justify;"> <strong>Rental growth accelerates.</strong> Prime open-market ground floor base rents increased by 1.9% y-o-y to RMB 51.1 per sqm per day. Decentralized rents rose 3.5% y-o-y to RMB 20.2 per sqm per day. Rental growth was mostly driven by East Nanjing Road in prime areas and Minhang in the decentralized market.</p><h3> <strong>Logistics</strong></h3><p style="text-align:justify;"> <strong>Net absorption rises as new projects reach completion. </strong>Demand was bolstered by strong sentiment from 3PLs and manufacturers. "Fengxian was the most active submarket, thanks in part to this quarter's large influx of new supply and significant leasing by 3PLs and supply chain management firms," said <strong>Stuart Ross, Head of Industrial for JLL China.</strong> As a result, non-bonded net absorption reached 66,000 sqm, up almost 10,000 sqm from 2Q18. Absorption rose somewhat less than might have been expected, given that Shanghai's take-up usually moves in tandem with supply, rising as preleases take effect in new completions. Overall demand and inquiry levels remain strong, however, and we expect the new projects to be absorbed over time.</p><p style="text-align:justify;"> <strong>Three new projects add 275,000 sqm to Shanghai total stock.</strong> GLP Fengxian and GLP Lingang reached completion in East Shanghai's Fengxian submarket after a round of delays. The two projects added 235,000 sqm to Fengxian, increasing the submarket's total to 785,000 sqm, and making it the second largest submarket in Shanghai after Songjiang in the city's west. Non-bonded vacancy rose by 3.7 ppts to 6.9%, mainly due to large supply in Fengxian, which drove vacancy in East Shanghai to 8.6%. Vacancy in West Shanghai declined to a near frictional level of 0.7% as supply there remained constrained.<br></p><p style="text-align:justify;"> <strong>Rental growth accelerates further.</strong> Market rents grew at their fastest rate in several years despite the rise in vacancy. Rents increased by 1.5% q-o-q to RMB 1.38 per sqm per day in 3Q18. Rental growth in West Shanghai was particularly strong as low vacancy, limited supply, and strong demand made landlords confident to raise asking rents. Both domestic and international investors are actively looking for investment opportunities in Shanghai logistics projects. That said, saleable assets remain limited even as the number of interested players grows, leading some players to look to alternative segments. For example, a cold chain warehouse in Fengxian was sold this quarter.</p><h3> <strong>Residential</strong></h3><p> Sales continue to recover as supply increases. Large supply partially released pent-up demand, leading primary sales to increase 59% q-o-q to an eight-quarter high of 19,532 units.  Under government-imposed price caps, most new units with good price-to-value ratios were snapped up by buyers in one day. However, a slowdown in sales was observed in other projects, as large supply gave buyers more choices and diluted demand. In the high-end sales market, most projects were well received due to strict price caps. As a result, a total of 586 units were sold in 3Q18, up 190.1% q-o-q. In the leasing market, demand remained stable.</p><p style="text-align:justify;"> <strong>Supply up as developers accelerate new launches.</strong> Supply more than doubled in 3Q18, rising 120% q-o-q to 26,594 units, the highest quarterly new launch total since 3Q16. More developers sped up new launches to ease cash flow pressure. In the high-end segment, eight projects launched 1,034 units, the most in two years. Most high-end new launches were well received. For example, Crystal Plaza in the Qiantan area launched the 116 remaining units in its first phase, receiving over 1,500 applicants and selling out within a few hours.</p><p style="text-align:justify;"> <strong>Primary prices stay flat while secondary prices continue to slip.</strong> In high-end segment, primary prices stayed flat due to strict government price controls. Secondary prices slipped 1.5% q-o-q in 3Q18 - compared to a 0.1% q-o-q dip in 2Q18. More home buyers were attracted by below-market-value new units in the primary market, and individual landlords lowered prices to entice buyers. In the leasing market, high-end rents edged down by 0.5% q-o-q in 3Q18, mostly due to increased supply from new completions. The land sales market continued to cool, as price controls in the sales market continued to weigh on developers. Eleven residential parcels were sold at reserve prices.</p><p style="text-align:justify;"> <strong>Tight policy to continue curbing primary prices.</strong> We expect tight housing policies such as price caps and Home Purchase Restrictions (HPRs) to remain in place in Shanghai in the following quarters. Developers will continue to accelerate new launches to ease cash flow pressure, leaving limited prospects for price rises over the remainder of 2018. "Sales are expected to continue recovering as increased supply helps to release pent-up demand. That said, sales rates will diverge among projects according to project competitiveness," said <strong>Stephenie Zhou, head of Project Sales for JLL Shanghai. </strong>We expect high-end primary prices to keep stable, while secondary prices to continue to fall in the rest of 2018.<br></p><h3> <strong>Capital Markets</strong></h3><p> National transaction volumes rebound as Shanghai remains China's top investment destination. Total transactions in China reached RMB 53.6 billion in 3Q18, representing a 25% y-o-y gain in which Shanghai accounted for 60% of total investments. Total 3Q18 investment volume in Shanghai reached RMB 32.1 billion, up 90% q-o-q and 69% in y-o-y. With several notable deals currently in progress, we expect transaction volumes to maintain their momentum over the next 2-3 quarters.<br></p><p style="text-align:justify;"> <strong>Office sector dominates Shanghai transactions, while retail remains strong.</strong> Offices remained the major sector for capital investment in Shanghai with a total investment volume of RMB 29.8 billion, or 88% of the total. Investors expressed interest in office projects in decentralised areas, where leasing momentum has proved strong. Meanwhile, the retail sector's total transaction level reached RMB 2.1 billion this quarter.</p><p style="text-align:justify;"> <strong>Market becomes more buyer-favored as foreign investors step up activity. </strong>With the financing environment continuing to tighten, the capital investment market is shifting from a seller's market to one favoring buyers. Foreign investors have become more active, stepping up to capture investment opportunities and increasing their <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/investors-and-developers/capital-markets" target="_blank">capital</a> allocations to China. There are several transactions in progress which foreign investors are actively involved.<br></p><p style="text-align:center;">​​– ends –​​<br></p><p>​​<span style="line-height:20.8px;">​</span><em style="line-height:1.6;"></em></p> <em style="line-height:1.6;"></em> <p> <em style="line-height:1.6;">​​<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">JLL ​Shanghai Page</a><br></em>>>>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>​​<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 style="text-align:justify;">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 86,000 as of June 30, 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