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James Macdonald Senior Director China +8621 6391 6688 james.macdonald@ Urban housing transaction volume increases slightly savills.com.cn Sophy Pan The average price of commodity housing decreased to RMB19,700 per sq m. Senior Manager Western China • The first-hand commodity housing in Chengdu urban areas1 • The average price of residential land in urban areas reached +8628 6737 3737 was about 768,000 sq m, decreasing 25.0% QoQ and 32.5% RMB 15,100 per sq m, increasing 57.6% QoQ and 22.3% YoY. sophy.pan@ savills.com.cn year-on-year (YoY) in Q2/2020. • The average price of residential land in suburban areas was CENTRAL MANAGEMENT • The transaction volume of urban first-hand commodity RMB 7,900 per sq m, decreasing 9.1% QoQ, but increasing housing totalled 1,148,000 sq m, increasing 5.7% QoQ and 5.0% YoY. Eric Wo 47.1% YoY in Q2/2020. Managing Director Western China • The average price of urban first-hand commodity housing +8628 8658 7828 was was RMB19,700 per sq m, decreasing 7.5% QoQ, but [email protected]

increasing 12.7% YoY. “Optimised housing provident Savills plc Savills is a leading global real fund policies are benefiting the estate service provider listed on • The average price of suburban2 first-hand commodity the London Stock Exchange. The company established in 1855, has housing was RMB12,800 per sq m, rising 2.5% QoQ and long-term development of a rich heritage with unrivalled growth. It is a company that leads 11.0% YoY. rather than follows, and now has Chengdu’s real estate market. over 600 offices and associates throughout the Americas, Europe, • The transaction volume of residential land in urban Asia Pacific, Africa and the Middle Developers are still enthusiastic East. This report is for general areas reached 300,000 sq m, increasing 56.8% QoQ, but informative purposes only. It may for land investment, and the not be published, reproduced or decreasing 26.7% YoY. quoted in part or in whole, nor may it be used as a basis for any residential land transaction contract, prospectus, agreement • The transaction volume of residential land in suburban areas or other document without prior volume is expected to keep consent. Whilst every effort has reached 1,547,000 sq m, increasing 72.6% QoQ and 58.7% been made to ensure its accuracy, Savills accepts no liability YoY. increasing with prices following whatsoever for any direct or consequential loss arising from its use. The content is strictly in-step.” copyright and reproduction of the 1 Urban areas: Qingyang, Jinjiang, Jinniu, Wuhou, Chenghua and Hi-tech . whole or part of it in any form is 2 Urban areas: Qingyang, Jinjiang, Jinniu, Wuhou, Chenghua and Hi-tech District. SOPHY PAN, SAVILLS RESEARCH prohibited without written permission from Savills Research. savills.com.cn/research 1 Residential

MARKET OVERVIEW this land and the average floor price reached GRAPH 1: Urban Area Residential Supply Transaction And Average Price, Q3/2015 to In Q2/2020, the first-hand residence supply in RMB17,299 per sq m. Q2/2020 Chengdu’s urban areas decreased 25.0% QoQ Supply (LHS) Transaction (LHS) to 768,000 sq m. The transaction volume of MARKET OUTLOOK 4.0 24 first-hand commodity housing in urban areas From April in 2020, the government 3.5 21 increased to 1,148,000 sq m. The district with has integrated the housing provident funds thousands RMB per sq m 3.0 18 the highest transaction volume in urban areas of the cities of Chengdu, , was Chenghua district which reached 297,000 and . Also, mortgage loan rules from 2.5 15 sq m. The transaction volume of first-hand the housing provident fund in Chengdu has 2.0 12 commodity housing in suburban areas been optimised from 1st July 2020, allowing

million sq m million 1.5 9 was 3,408,000 sq m. Among the suburban for real estate developers to guarantee

1.0 6 districts, saw the highest mortgages instead of a third-party, greatly transaction volume, which reached 1,054,600 simplifying the process. On 26th May, the 0.5 3 sq m. The average price of first-hand Chengdu Municipal Housing and Urban-Rural 0.0 0 residences in urban areas decreased 7.5% QoQ Development Bureau issued a document that Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Q4 to RMB19,700 per sq m. reduced the time for the commodity housing 2015 2016 2017 2018 2019 2020 transaction contracts’ online registration Source Savills Research LAND MARKET from three working days to only one. In Q2/2020, the transaction volume of These related policies helped promote and residential land in urban areas totalled advanced the real estate market system in 300,000 sq m, an increase of 56.8% QoQ, Chengdu and the wider Chengdu-Chongqing GRAPH 2: Transaction Volumes In Urban Areas, Q3/2015 to Q2/2020 but a decrease 26.7% YoY. The average floor Economic Circle. Additionally, government price reached RMB15,100 per sq m, increasing measures introducing talent and encouraging Qingyang Jinjiang Jinniu Wuhou Chenghua Hi-tech district entrepreneurship in Chengdu will help attract 3.0 57.6% QoQ and 22.3% YoY. The residential land with the highest floor price in urban a larger population to settle down in the city.

2.5 areas was in Sanshengxiang in Jinjiang Thanks to these policies, the demand for district. Jianfa Real Estate Group Chengdu commodity housing will continue to increase

2.0 Limited Company obtained this land, and its in 2H/2020. The transaction volume of average floor price reached RMB19,800 per residential land is also expected to increase, 1.5 sq m. with prices following closely behind. million sq m sq million 1.0 In suburban areas, the transaction volume of residential land reached 1,547,000 sq m, 0.5 increasing 72.6% QoQ and 58.7% YoY. The residential land with the highest floor price 0.0 in suburban areas was near Zhengxing Street Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Q4 2015 2016 2017 2018 2019 2020 in Tianfu New Area. Chengdu Xinxuan Real

Source Savills Research Estate Consulting Limited Company obtained

GRAPH 3:High-end Residential Price Index, Q3/2015 TABLE 1:Future Supply, 2H/2020 to Q2/2020 Price Index 120 PROJECT NAME COMPLETION DISTRICT DEVELOPER

100 Chengdu Excellence Opusône 18 July 2020 Chenghua Jiacheng Properties Limited Company 80 Chengdu Culture and 100

= Zhongzhou Central Tourism Panda Town 60 July 2020 Xindu Park Investment Limited Company Q1/2013 40 BRC AP Yongjin Chengdu Xiangdu Tongrui Late-July 2020 Xindu Residence Properties Limited Company 20 Chengdu Huafu Jincheng Zhongjian - September Zhongjian Real Estate 0 Xinjin

Q1 Q1 Q1 Q1 Q1 Wangjin City 2020 Development Limited Q2 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Q4 Company 2015 2016 2017 2018 2019 2020

Source Savills Research Source Savills Research

savills.com.cn/research 2