Core Insights - The report by JLL highlights the resilience and steady growth of Beijing's real estate market in 2025, driven by the core AI industry and a shift from a "downturn cycle" to "re-pricing" in the office market [1] - The demand for office space is increasingly rational, with a significant rise in lease renewals as tenants gain bargaining power [2] - The investment market saw a notable decline in large transactions, with a total of approximately 18 billion yuan in 2025, down 58% year-on-year [3] Office Market - The overall demand for Grade A office space remains weak, leading tenants to prefer lease renewals over relocations due to high costs [2] - By the end of 2025, the vacancy rate for Grade A office buildings in Beijing slightly decreased to 15.2%, with net absorption at 21,790 square meters [2] - Average monthly rent for Grade A office space fell to 210 yuan per square meter, a decrease of 5.6% quarter-on-quarter and 16.3% year-on-year [3] Investment Market - The large transaction market in Beijing slowed down significantly, with total transaction volume for the year at approximately 18 billion yuan, marking a 58% decline from the previous year [3] - Retail assets are gaining more attention from investors, as evidenced by a strategic partnership between Ingka and Gaohe Capital to manage shopping center assets [3] - The expansion of public REITs to include commercial office and hotel projects is expected to enhance market liquidity and asset management [4] Retail Market - Consumer retail sales in 2025 experienced a negative growth of 3.1%, leading brands to adopt a cautious approach to expansion [5] - New supply in the retail sector was concentrated in the first half of the year, with over 800,000 square meters added, while the second half saw a significant slowdown [5] - The demand for retail space is increasingly driven by emotional value and cultural identity, with consumers willing to pay for experiences [5] Industrial and Logistics Market - The demand in the industrial logistics sector was primarily driven by cost-cutting relocations, with low new expansion activity [6] - The average effective rent in the market decreased by 4.3% in the fourth quarter, leading to a narrowing of regional price differences [7] - The market is expected to stabilize as demand from industries requiring high-quality warehousing, such as automotive and pharmaceuticals, begins to recover [7] Hotel Market - The high-end hotel market in Beijing faced challenges in the second half of 2025, with average occupancy rates and revenue per available room declining by over 4% year-on-year [8] - The addition of 1,505 new hotel rooms in the second half of 2025 indicates a maturing market, with expectations for steady growth in new supply over the next two years [8] - The clarity in the path for hotel REITs is anticipated to enhance asset performance and attract new investment opportunities [9]

Group 1 - Huaxia CapitaLand Commercial REIT has received approval from the Shanghai Stock Exchange and the China Securities Regulatory Commission to raise a total of 400 million units, marking it as the first foreign-funded consumption REIT in China [1] - The underlying assets of the REIT include two major projects located in Guangzhou and Changsha, with a total construction area of 168,405 square meters and an overall occupancy rate of approximately 96% as of March 31, 2025 [1][2] - The REIT is positioned to leverage the growth potential of China's high-quality consumption market, focusing on first-tier and strong second-tier cities to diversify risks and enhance returns [2][3] Group 2 - The issuance of the REIT reflects foreign investment confidence in China, aligning with the country's economic transformation and capital market opening [2][3] - CapitaLand has over 30 years of operational experience in China, managing more than 40 quality shopping center assets with an asset management scale exceeding 80 billion yuan and an average occupancy rate above 95% [3][4] - CapitaLand aims to integrate global experience with local practices to contribute to China's high-quality economic development through real estate asset management and innovative financial tools [4]