In 2023, the average price of residential housing sold in Shanghai, the most important economic hub of China, reaching 46,000 yuan per square meter, making the city one of the least affordable cities in the country. The housing market boom Since the housing reform in the 1990s, the prices of homes in Shanghai have increased almost every year, thanks to the growth of the city’s population and, thus, the high demands in the housing market. The high property prices gradually became out of reach for most residents, who earn an annual per capita income of only 229,000 yuan in 2023. Residential properties in the city center were especially unaffordable, as newly built homes located within Shanghai's inner ring road had an average price of 119,839 yuan in 2023, 2.4 times more expensive than their counterparts outside the outer ring road. Risks and interventions The high price not only made living in the city expensive for its residents, but also posed a grave risk to China’s financial system. In the first 20 years of this century, the total value of personal housing mortgage loans in Shanghai increased by more than 20 times, and defaults of any moderate scale can be consequential. Therefore, both the central and the municipal authorities had been attempting to curb the continuous rise of property costs in Shanghai, through the increase in the supply of housing stocks and policies limiting speculations in the market. However, most measures were not as effective as anticipated.

Property Price: Residential: Shanghai data was reported at 44,429.879 RMB/sq m in 2022. This records an increase from the previous number of 40,974.194 RMB/sq m for 2021. Property Price: Residential: Shanghai data is updated yearly, averaging 10,308.500 RMB/sq m from Dec 1995 (Median) to 2022, with 28 observations. The data reached an all-time high of 44,429.879 RMB/sq m in 2022 and a record low of 2,477.000 RMB/sq m in 1995. Property Price: Residential: Shanghai data remains active status in CEIC and is reported by Shanghai Municipal Bureau of Statistics. The data is categorized under China Premium Database’s Price – Table CN.PE: Property Price: Residential: Prefecture Level City.

In 2022, the price for new residential property in Shanghai's inner ring dropped by more than 4,000 yuan per square meter, to 119,244 thousand yuan per square meter. Although the local authorities introduced policies to stabilize the market, the real estate market in Shanghai’s central districts remained under downward pressure, similar to those experienced by other major cities in China.

The most competitive real estate market in the country

Home prices in Shanghai are among the most expensive globally. The area within the city's inner ring road is certainly one of the most competitive real estate markets in all of China, with property prices nearly three times higher than those outside the outer ring road. Rising prices are far beyond the reach of ordinary residents, and the few who can afford to buy often have to take out substantial mortgages for their homes, resulting in a high proportion of real estate in their personal assets.

Challenges facing China’s real estate sector

The high level of indebtedness of the Chinese people and the bubbles in the country's real estate sector have become one of the major risks to China's economy. While developers expanded through continuous borrowing and the sale of off-plan properties to homebuyers, the market saw a significant excess of housing supply in most regions. There have also been instances in recent years where developers have had difficulties in completing construction projects or in repaying their loans or bonds. Addressing the risks in China's real estate sector, particularly in companies such as the Evergrande Group and Country Garden, has become an urgent task to ensure China's economic stability and prosperity.

Property Price: YTD Avg: Office: House in Advance: Shanghai data was reported at 38,639.876 RMB/sq m in Dec 2019. This records an increase from the previous number of 37,960.866 RMB/sq m for Nov 2019. Property Price: YTD Avg: Office: House in Advance: Shanghai data is updated monthly, averaging 23,777.535 RMB/sq m from Jan 2006 (Median) to Dec 2019, with 166 observations. The data reached an all-time high of 43,129.714 RMB/sq m in Feb 2018 and a record low of 10,881.000 RMB/sq m in Feb 2007. Property Price: YTD Avg: Office: House in Advance: Shanghai data remains active status in CEIC and is reported by National Bureau of Statistics. The data is categorized under China Premium Database’s Price – Table CN.PD: NBS: Property Price: Office Building: Monthly.

Despite a slowdown in the country's economy, property prices remained relatively high across China in 2023. In Shanghai, the average prices for residential housing exceeded RMB 40,000 per square meter, making the metropolis one of the most expensive cities to live in globally. Meanwhile, many less developed regions, such as the provinces of Guizhou, Gansu, and Guangxi, had average housing prices below RMB 6,000 per square meter. High property prices in major cities The commodification of real estate in the 1990s led to a rapid rise in property prices across China over the last three decades. Between 1998 and 2023, average property prices in China rose more than four times to more than 10,000 RMB per square meter. The cost of housing in core areas of major urban centers such as Shenzhen, Shanghai, and Beijing can often reach unaffordable levels, even for the middle class. Key drivers behind the housing price rise Due to the regional disparities in the country, China's rapid urbanization resulted in a high influx of internal migrants into its eastern cities, resulting in a short housing supply across many regions. At the same time, due to China's unique land and tax system, local governments are often highly dependent on land transfer revenues for their finances. As a result, many regional authorities tend to restrict the supply of available land in the market, further exacerbating property price rises across the country.

In 2023, the total value of residential housing sold in Shanghai, China surpassed 670 billion yuan, slightly decreasing from the previous year. This growth was mainly fueled by the significant price rise in residential housing in the city. In 2017, the government of Shanghai introduced several strict regulations on the housing market, intending to curb speculations. The policies resulted in a sharp decline in the market between 2016 and 2017, while also causing further price increases in the years that followed.

In 2023, the average price of real estate in China was approximately 10,438 yuan per square meter, representing a decrease from the previous year. Rising prices in the real estate market Since the 1998 housing reform, property prices in China have been rising continuously. Housing in the country is now often unaffordable, especially considering the modest per capita income of Chinese households. Shanghai and Beijing even have some of the most competitive real estate markets in the world. The rapid growth in housing prices has increased wealth among homeowners, while it also led to a culture of speculation among buyers and real estate developers. Housing was treated as investments, with owners expecting the prices to grow further every year. Risk factors The expectation of a steadily growing real estate market has created a property bubble and a potential debt crisis. As Chinese real estate giants, such as China Evergrande and Country Garden, operate by continuously acquiring land plots and initiating new projects, which often require substantial loans and investments, a slowdown in property demands or a decline in home prices can significantly affect the financial situation of these companies, putting China’s banks in a vulnerable position. In addition, due to a lack of regulations and monetary constraints, the long-term maintenance issues of high-rise apartments are also a concern to the sustainable development of China’s cities.

Graph and download economic data for Real Residential Property Prices for China (QCNR628BIS) from Q2 2005 to Q4 2024 about China, residential, HPI, housing, real, price index, indexes, and price.

Shanghai Property Price: Secondary Mkt: Yangpu: Zhongyuan data was reported at 12,743.000 RMB/sq m in Jan 2011. This records an increase from the previous number of 12,714.000 RMB/sq m for Dec 2010. Shanghai Property Price: Secondary Mkt: Yangpu: Zhongyuan data is updated monthly, averaging 10,943.000 RMB/sq m from Jan 2005 (Median) to Jan 2011, with 73 observations. The data reached an all-time high of 12,771.000 RMB/sq m in Jun 2010 and a record low of 7,315.000 RMB/sq m in Jul 2006. Shanghai Property Price: Secondary Mkt: Yangpu: Zhongyuan data remains active status in CEIC and is reported by Shanghai Existing Property Index Office. The data is categorized under China Premium Database’s Price – Table CN.PD: Shanghai Existing Property Index Office: Shanghai Property Price: Secondary Market (Discontinued).

In 2023, the average price for residential real estate in Shenzhen 50,010 yuan per square meter. This was the highest price among all major cities in China, with the average price across the country amounting to 16,780 yuan per square meter. A pillar of the Chinese economy China gradually abolished its welfare housing allocation system and liberalized its real estate market in the 1990s. In 2003, the government declared the real estate sector as one of the pillars of the Chinese economy. Thanks to the country's rapid economic development and urbanization, China's real estate market expanded significantly in the last two decades, with the sector accounting for about seven percent of China's GDP in 2022. Unaffordable in major urban centers While the real estate industry greatly contributed to the growth of China's economy, the housing market boom also created social issues and financial risks. In comparison to household income, property prices in major cities, most notably Shanghai, Beijing, Guangzhou, and Shenzhen, are extraordinarily expensive for average citizens. Soaring housing prices have also led to a rapid division of wealth between homeowners and renters. At the same time, debt problems created by the rapid expansion of real estate companies and the high levels of debt accumulated by Chinese citizens have created serious potential hazards for China's financial system.

Shanghai Property Price: Secondary Mkt: Yangpu: Wujiaochang data was reported at 14,371.000 RMB/sq m in Jan 2011. This records an increase from the previous number of 14,343.000 RMB/sq m for Dec 2010. Shanghai Property Price: Secondary Mkt: Yangpu: Wujiaochang data is updated monthly, averaging 12,457.000 RMB/sq m from Jan 2005 (Median) to Jan 2011, with 73 observations. The data reached an all-time high of 14,400.000 RMB/sq m in May 2010 and a record low of 7,829.000 RMB/sq m in Jan 2005. Shanghai Property Price: Secondary Mkt: Yangpu: Wujiaochang data remains active status in CEIC and is reported by Shanghai Existing Property Index Office. The data is categorized under China Premium Database’s Price – Table CN.PD: Shanghai Existing Property Index Office: Shanghai Property Price: Secondary Market (Discontinued).

Property Price Index: Secondary Mkt: Residential: below 90 sq m: Shanghai data was reported at 131.600 2010=100 in Dec 2015. This records an increase from the previous number of 130.000 2010=100 for Nov 2015. Property Price Index: Secondary Mkt: Residential: below 90 sq m: Shanghai data is updated monthly, averaging 113.400 2010=100 from Jan 2011 (Median) to Dec 2015, with 60 observations. The data reached an all-time high of 131.600 2010=100 in Dec 2015 and a record low of 100.800 2010=100 in Jan 2011. Property Price Index: Secondary Mkt: Residential: below 90 sq m: Shanghai data remains active status in CEIC and is reported by National Bureau of Statistics. The data is categorized under China Premium Database’s Real Estate Sector – Table CN.EA: Property Price Index: (2010=100): Secondary Market Residential: By Area of Floor Space (Discontinued).

Shanghai Property Price: Secondary Mkt: Luwan: Huaihai Road data was reported at 23,971.000 RMB/sq m in Jan 2011. This records an increase from the previous number of 23,857.000 RMB/sq m for Dec 2010. Shanghai Property Price: Secondary Mkt: Luwan: Huaihai Road data is updated monthly, averaging 20,343.000 RMB/sq m from Jan 2005 (Median) to Jan 2011, with 73 observations. The data reached an all-time high of 23,971.000 RMB/sq m in Jan 2011 and a record low of 11,200.000 RMB/sq m in Jan 2005. Shanghai Property Price: Secondary Mkt: Luwan: Huaihai Road data remains active status in CEIC and is reported by Shanghai Existing Property Index Office. The data is categorized under China Premium Database’s Price – Table CN.PD: Shanghai Existing Property Index Office: Shanghai Property Price: Secondary Market (Discontinued).

The China office real estate market, valued at approximately $XX million in 2025 (assuming a logical extrapolation based on the provided CAGR of >5.50% and market size XX), presents a dynamic and rapidly evolving landscape. Key growth drivers include the continued expansion of China's IT and ITES sector, robust growth in the BFSI industry, and the increasing demand for modern, efficient office spaces in major cities like Beijing and Shanghai. These factors are contributing to a compound annual growth rate exceeding 5.50%, projecting significant market expansion through 2033. However, market restraints such as economic fluctuations, government regulations impacting property development, and potential oversupply in certain segments could influence the growth trajectory. The segmentation of the market by major cities (Beijing, Shanghai, and Rest of China) and sectors (IT & ITES, Manufacturing, BFSI, Consulting, and Other Services) highlights the diverse opportunities and challenges within the market. Leading developers like Wanda Group, Henderson Land, and Evergrande Group are key players shaping the market dynamics through their significant project portfolios. Understanding these factors is crucial for investors and businesses operating within this competitive environment. The forecast for the China office real estate market reveals a consistently expanding market, although the rate of growth may fluctuate slightly year-on-year depending on macroeconomic conditions and government policies. The concentration of activity in major cities like Beijing and Shanghai underscores the importance of strategic location in driving investment. The IT and ITES sector is expected to remain a significant driver of demand due to continuous technological advancements and the growth of Chinese tech companies. The BFSI sector also presents strong growth potential due to its increasing need for sophisticated office spaces. The "Rest of China" segment showcases emerging opportunities as smaller cities experience economic growth and attract investment. While significant challenges remain, the overall outlook suggests considerable potential for growth and profitability for those strategically positioned within the China office real estate market. China Office Real Estate Market Report: 2019-2033 This comprehensive report provides an in-depth analysis of the China office real estate industry, covering the period from 2019 to 2033. With a base year of 2025 and a forecast period extending to 2033, this report offers invaluable insights for investors, developers, and businesses operating within this dynamic market. The report uses data from the historical period (2019-2024) and incorporates recent market developments to provide a holistic view of the sector's current status and future trajectory. It analyzes key players like Wanda Group, Henderson Land Development Company Limited, Evergrande Group, Greenland Holding Group, and others, examining their strategies and market positions within the context of evolving industry trends. The market is segmented by major cities (Beijing, Shanghai, Rest of China), sectors (IT & ITES, Manufacturing, BFSI, Consulting, Other Services), and other critical factors. This report is crucial for understanding the challenges and opportunities presented by the rapidly changing Chinese office real estate landscape. Recent developments include: April 2023: China's new private equity real estate pilot programme is designed to boost investment in the property sector and attract increased foreign investment. The pilot programme, announced by the Securities Regulatory Commission (CSRC) last month, is intended to boost private investment in the Chinese real estate market and open the door to foreign investors. The aim is to improve liquidity and reduce property developers' debt ratios., March 2023: Cushman & Wakefield's (NYSE: CWK) Greater China Capital Markets team recently facilitated the acquisition by CapitaLand Investment Private Fund of the Beijing Suning Life Plaza mixed-use development from Suning for approximately US$400 million.. Key drivers for this market are: Strong Demand and Rising Construction Activities to Drive the Market, Rising House Prices in Germany Affecting Demand in the Market. Potential restraints include: Weak economic environment. Notable trends are: Robust Leasing Demand For the Office Spaces Driving the Market.

Shanghai Property Price: Secondary Mkt: Minhang: Hanghuaqibao data was reported at 11,629.000 RMB/sq m in Nov 2010. This records an increase from the previous number of 11,571.000 RMB/sq m for Oct 2010. Shanghai Property Price: Secondary Mkt: Minhang: Hanghuaqibao data is updated monthly, averaging 10,086.000 RMB/sq m from Jan 2005 (Median) to Nov 2010, with 71 observations. The data reached an all-time high of 11,743.000 RMB/sq m in Mar 2010 and a record low of 6,557.000 RMB/sq m in Jan 2005. Shanghai Property Price: Secondary Mkt: Minhang: Hanghuaqibao data remains active status in CEIC and is reported by Shanghai Existing Property Index Office. The data is categorized under China Premium Database’s Price – Table CN.PD: Shanghai Existing Property Index Office: Shanghai Property Price: Secondary Market (Discontinued).

In 2023, the average price for office properties in Shanghai dropped to 34,804yuan per square meter. Due to the economic importance of China's first-tier cities, and economic powerhouses such as Guangdong and Zhejiang, demands for office space in these regions remained relatively high, with prices remained generally stable in 2023.

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In June 2024, 73.61 percent of houses sold in Shanghai were priced under 4 million yuan, with 57.24 percent below 3 million yuan. Demand for "old, dilapidated, and small houses" surged, particularly among single individuals from other regions.

CN: Shanghai Property Price: Secondary Mkt: Zhabei: Tianmu Road data was reported at 17,714.000 RMB/sq m in Jan 2011. This records a decrease from the previous number of 17,743.000 RMB/sq m for Dec 2010. CN: Shanghai Property Price: Secondary Mkt: Zhabei: Tianmu Road data is updated monthly, averaging 12,943.000 RMB/sq m from Jan 2005 (Median) to Jan 2011, with 73 observations. The data reached an all-time high of 17,829.000 RMB/sq m in May 2010 and a record low of 8,345.000 RMB/sq m in Jan 2005. CN: Shanghai Property Price: Secondary Mkt: Zhabei: Tianmu Road data remains active status in CEIC and is reported by Shanghai Existing Property Index Office. The data is categorized under China Premium Database’s Price – Table CN.PD: Shanghai Existing Property Index Office: Shanghai Property Price: Secondary Market (Discontinued).

The China Residential Real Estate Market Report is Segmented by Type (Villas and Landed Houses, Apartments and Condominiums) and by City (Shenzhen, Beijing, Shanghai, Hangzhou, Guangzhou, and Other Cities). The Report Offers the Market Sizes and Forecasts for the China Residential Real Estate Market in Value (USD) for all the Above Segments.