– January 2021

MARKET IN MINUTES Residential Savills Research

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RESEARCH James Macdonald Senior Director +8621 6391 6688 james.macdonald@ Prices in main urban areas rise savills.com.cn Sophy Pan The average transaction price in the main urban areas increased to RMB13,300 Senior Manager sq m. +8628 6737 3737 • The supply of first-hand commodity housing in the main • In 2H/2020, Chongqing’s Housing, Urban and Rural sophy.pan@ savills.com.cn urban area1of Chongqing increased 11.1% to 6.7 million sq m Construction Commission announced that enterprises can quarter-on-quarter (QoQ) in Q4/2020. apply for an employee housing accumulation fund reduction, down to the minimum of 5%, in order to alleviate the cash CENTRAL MANAGMENT • The transaction volume of first-hand commodity housing in pressure on companies due to the fallout of COVID-19. Eric Wo the main urban area increased 22.9% to 6.5 million sq m in Managing Director Q4/2020. Western China +8628 8658 7828 • The transaction price of first-hand housing in the main [email protected] urban area rose slightly to RMB13,300.

Savills plc Savills is a leading global real • The transaction volume of residential land increased estate service provider listed on 76.2% QoQ to 4 million sq m, and the average floor price of “Relatively stable market the London Stock Exchange. The company established in 1855, has residential land fell 19.2% QoQ to RMB5,109 per sq m. a rich heritage with unrivalled demand at the end of growth. It is a company that leads rather than follows, and now has over 600 offices and associates • From January to November 2020, Chongqing’s real estate Q4/2020 helped boost the throughout the Americas, Europe, development investment decreased 1.5% year-on-year (YoY) Asia Pacific, Africa and the Middle East. This report is for general to RMB397.5 billion. commodity housing price in informative purposes only. It may not be published, reproduced or quoted in part or in whole, nor may Chongqing’s residential it be used as a basis for any • In terms of high-end residential properties, the entry of contract, prospectus, agreement Vanke’s residential project Jinxiubinjiang increased the or other document without prior market.” consent. Whilst every effort has supply of high-end residential units in Yuzhong been made to ensure its accuracy, SOPHY PAN, SAVILLS RESEARCH Savills accepts no liability and targeted high-end customers looking to upgrade their whatsoever for any direct or consequential loss arising from its residences. use. The content is strictly copyright and reproduction of the whole or part of it in any form is prohibited without written 1 The main urban area of Chongqing includes Yuzhong, Jiangbei, Yubei, Beibei, Jiulong- permission from Savills Research. po, Shapingba, Dadukou, Nan’an and Banan districts. savills.com.cn/research 1 Residential

MARKET OVERVIEW sq m. Longfor will develop this plot into GRAPH 1: Real Estate Investment And YoY Growth, 2005 to 11/2020 From January to November 2020, Chongqing’s first South Paradise Walk Real estate investment (LHS) YoY growth (RHS) Chongqing’s real estate development shopping mall, enriching and enhancing 500 50% investment decreased 1.5% YoY to the consumer atmosphere in the area. RMB397.5 billion. The supply of first- 400 40% hand commodity housing in the main MARKET OUTLOOK urban area of Chongqing increased 11.1% In 2H/2020, Chongqing’s Housing, Urban 300 30% QoQ to 6.7million sq m in Q4/2020. and Rural Construction Commission announced that enterprises could apply for 200 20% The transaction volume of first-hand commodity housing in the main urban an employee housing accumulation fund reduction, down to the minimum of 5%,

billion RMB billion 100 10% area increased 22.9% QoQ to 6.5 million sq m in Q4/2020. The transaction price of in order to alleviate the cash pressure on 0 0% first-hand housing in the main urban area corporates due to the fallout of COVID-19. rose slightly to RMB13,300. In terms of However, the new policy will not affect the - -10% high-end residential properties, the entry amount employees are able to normally 2011 2017 2012 2015 2013 2018 2016 2019 2014 2010 draw, and they can still apply as normal 2007 2005 2008 2006 2009 of Vanke residential project Jinxiubinjiang

1-11/2020 increased the supply of high-end residential for the housing accumulation fund loan. Chongqing’s residential market, huge Source Savills Research units in Yuzhong District and targeted high-end customers looking to upgrade urban population and gradually rising their residences. per capita disposable income of residents are still expected to support the steady GRAPH 2: Residential Supply, Volume And Price LAND MARKET development of the housing market. In The Main Urban Area, Q1/2016 to Q4/2020 The transaction volume of residential land Supply volume (LHS) Transaction volume (LHS) Average price (RHS) increased 76.2% QoQ to 4 million sq m, 9 18,000 and the average floor price of residential 8 16,000 land fell 19.2% QoQ to RMB5,109 per sq

7 14,000 m. Among the land transactions, there were many high-quality plots, such as

6 12,000 m sq RMB per Guanyinqiao Group’s plot in Jiangbei 5 10,000 District. As a rare plot in the core business 4 8,000 circle, the transaction price of the land million sq m 3 6,000 reached RMB2.5 billion, and it was finally

2 4,000 won by Hong Kong Land. Another land plot located in Nanan District, in the Nanping 1 2,000 business circle, was plot won by Longfor 0 0 and the transaction floor price was RMB7.9 Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Q4 million with a floor price of RMB7,076 per 2016 2017 2018 2019 2020

Source Savills Research

GRAPH 3: High-End Residential Price Index, TABLE 1: Chongqing New Residential Property, Q4/2020 Q1/2016 to Q4/2020 Price Index(LHS) Average Price(RHS) 140 28,000 PRICE PROJECT NAME AREA DEVELOPER (RMB/SQ M) 120 24,000

100 20,000 Jiuchenfu 11,010 Yubei Sunac RMB per sq m sq RMB per

80 16,000 100 = Yinweilai 13,280 Shapingba Dongyuan 60 12,000

Q1/2013 40 8,000 Tianjun 17,360 Yubei Poly 20 4,000

Zhongjun, 0 0 Yuejingtai 10,740 Beibei Hongyang Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Q4 2016 2017 2018 2019 2020

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savills.com.cn/research 2