1、Gathering Momentum,Gathering Momentum,Moving Toward BrightnessMoving Toward Brightness2023 China Rental Housing ReportDec,2023Key Drivers of Rental Housing in ChinaChina Rental Housing Market Driving Forces Model3|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:JLLYoung peopleMigrant popul

2、ationLater marriage and childbirthShrinking household sizesDriversFavourableDemographicsBarriers to Home OwnershipHome price-to-income ratiosDifference in costs between buying and rentingHome purchase regulationsYoung peopleNew citizens and young people-orientedLand supplyFunding and taxExit mechani

3、smPolicy SupportIncreased Acceptance of RentingExperiences over possessionsCommute timesPursuit of flexible,free,and diverse lifestylesStrong domestic migration and large renter base drive rental housing markets in major cities4|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:National Bure

4、au of Statistics,JLL analysisMigrant Population in Tier 1 Cities(2022)Sources of Housing among Urban PopulationSource:Seventh National Population Census,JLL analysisRentalConstructionPurchaseInheritance or giftOthers15 14 10 6 10 8 8 12 40.6%37.8%44.8%67.0%0%10%20%30%40%50%60%70%80%-5 10 15 20 25 30

5、ShanghaiBeijingGuangzhouShenzhenShare of migrant population to total populationPopulation size(million)Migrant Population(LHS)Local Population(LHS)Share of migrant population to total population(RHS)77%39%36%35%26%0%10%20%30%40%50%60%70%80%90%100%ShenzhenGuangzhouShanghaiBeijingNationalHome Price In

6、dex:Price-to-Income Ratios in Major CitiesHomeowning vs.Renting:Monthly Cost Comparison in Major CitiesRenting becomes an attractive and cost-effective alternative amid high home pricesNote:Bubble sizes and numbers indicate different house price-to-income ratios Sources:JLL,National Bureau of Statis

7、tics,CREISNote:Assuming buying or renting a typical house of 90 sqm;numbers are calculated based on average primary prices and average rents in 2022 in each city.Calculations are based on minimum down payment ratios for first-home purchases in each city,assuming houses purchased based on a 5-year LP

8、R of 4.3%(as of the end of 2022)and a 30-year loan term.Sources:JLL,National Bureau of Statistics,CREIS5|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Strong policy support for rental housing development6|2023 Jones Lang LaSalle IP,Inc.All rights reserved.More diversified channels for supply of

9、 affordable rental housing:Collectively-owned landIdle land owned by enterprises and public institutionsExisting non-residential propertiesResidential-use land set aside for exclusive rental use within industrial parksLand newly zoned for rental useHousing&Land SupplyNew Construction&Stock Conversio

10、nBanks provide long-term financing for affordable rental housingCorporate bond financing for the construction and operation of affordable rental housingAffordable rental housing included as one of the pilot industries for REITsIncreased credit support for rental housing developersRemoved restriction

11、s on the type of developers applying for development loans and eased application requirementsIncreased credit support for operatorsAsset-heavy:relaxation of credit limits and termsAsset-light:relaxation of credit termsFinancial SupportCredit+REITsTax SupportReduced tax burdenLower utility fees Exemp

12、tion of urban infrastructure supporting feeLower tax rates for rental housing on non-residential lands 5%1.5%Value-added tax12%4%Property taxSupport from budgetary funds has been skewed in favor of affordable rental housing.Financial support for affordable rental housing mainly comes in the form of

13、special bonds.Financial SupportBudgetary Funds&Special BondsSource:Public information,JLL analysisGrowing popularity and increased acceptance of renting among young generation Preference for“experiences over possessions”Preference for flexible work stylesAchieving work-life balance has become more c

14、rucial 7|2023 Jones Lang LaSalle IP,Inc.All rights reserved.China Rental Housing Market OverviewChinas rental housing market has entered the Lift-Off PhaseOperators(limited)Operators(significant);Developers(limited)Operators(significant);Developers(significant)Institutional investors(moderate)Operat

15、ors(limited);Developers(significant)Large institutional investors(significant)LimitedModerate policy supportStrong policy supportMarket-driven with continued policy supportShort-term capitalShort-term capital dominantBoth Short and Long-term capitalLong-term capital dominantSingle,young professional

16、sSingle,young professionals;Young couplesSingle,young professionals;Young couples;Families with childrenSingle,young professionals;Young couples;Families with childrenEmergence of mass market products with similar room types and sizesDominated by mass market products and homogenous products;Emergenc

17、e of mid-to-high-end productsDiversified products with improved servicesDiversified products with premier servicesShort-term capitalLimitedFast growingSimilar to levels of mature CRE assetsLowLowIncreasingHighIntroductory Phase(2015)Growth Phase(2018)Lift-Off Phase(2022)Mature Phase(Future)Player Pr

18、esenceGovernments RoleCapitalTenant BaseProductsCapitalTransparency9|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Market demand remains resilient amid growing stockNote:Total rental housing stock displayed above represent the total number of units under management Source:CRIC,company annual re

19、ports,public information,JLL analysisTotal Rental Housing Stock Managed by Leading Rental Housing Providers in China Top 30 Providers(by units under management)Average Occupancy Rates of Mature Projects Managed by Top Rental Housing Providers,1H2310|2023 Jones Lang LaSalle IP,Inc.All rights reserved

20、.Note:Occupancy rates displayed above represent the occupancy rate of mature projects(those operated for more than 6 months)managed by those rental housing providersSource:Company annual reports,public information,JLL analysis11|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:JLL Rental Ho

21、using Operator Survey(2023)Tenant base breakdown by ageTenant base breakdown bymarital statusSmall units remain favoured*Tenants trending younger,fueling demand for small unitsWhite-collar workers are still the main drivers of leasing,while demand from college students and freelancers is on the rise

22、Tenant base by occupation type12|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:JLL Rental Housing Operator Survey(2023)Senior professionalsPrefer mid-to-high-end rental housingStudentsMaster students,international students,as well as local students seeking better living conditionsShort-t

23、erm tenantsTenants participating in short-term training,business trips or internshipsYoung white-collar workersMainly seek one-bedroom units or studiosFreelancersE.g.fashion bloggers;generally prefer aesthetically pleasing and modern rental apartmentsFamily tenantsPrefer apartments near schools;sear

24、ching for two or three-bedroom unitsSmall businessownersPrefer mid-to-high end rental housingLocation,public transport accessibility,rents,and housing quality are the primary considerations of tenantsTop factors tenants consider in choosing rental housingLocation and access to public transport are t

25、he primary considerations for tenants whensearching for rental accommodationHigh-quality,cost-effective rental housing offerings are favoured by young rentersProject amenities and brand reputation growing increasingly important to tenants13|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:J

26、LL Rental Housing Operator Survey(2023)Average lease durationsFlexible lease terms provide enhanced catering to tenants diverse needsAround 52%of surveyed operators report decreased average lease durations compared to two years ago14|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:JLL Rent

27、al Housing Operator Survey(2023)Establishing operator-owned customer acquisition channels is crucial for searching future tenantsOfficial websites,mobile apps,and WeChat mini appsCustomer acquisition channelsTypical instances include Beike,Anjuke,and ZiroomThird-Party PlatformsOperator-Owned Channel

28、sOffline leasing agentsThird-Party Agents15|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:JLL Rental Housing Operator Survey(2023)There is untapped potential for further expansion among corporate clients16|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:JLL Rental Housing Opera

29、tor Survey(2023)Corporate tenants make up 16%of the tenant bases among the surveyed operatorsShare of Corporate TenantsShares of Corporate Tenants(by Operator Types)The gross operating profit(GOP)margin of rental housing is generally higher than that of star-rated hotels and high-end serviced apartm

30、entsRental Housing Operators Gross Operating Profit MarginsComparison of Gross Operating Profit MarginsAcross Different Living SectorsRental housing80%50-65%High-end serviced apartments30-45%Star-rated hotels17|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:JLL Rental Housing Operator Sur

31、vey(2023)67%67%of the surveyed operators stated that some of their operational projects has been incorporated into the affordable rental housing systemOpportunityChallenge67%of the surveyed operatorsnoted that this incorporation allowed them to enjoy government tax incentives33%of the surveyed opera

32、torsnoted that this incorporation allowed them to enjoy preferential utility rates58%of the surveyed operators noted that this incorporation poses pricing caps42%of the surveyed operators noted that this incorporation poses restrictions on the target tenant group18|2023 Jones Lang LaSalle IP,Inc.All

33、 rights reserved.Source:JLL Rental Housing Operator Survey(2023)Differing opinions among operators regarding whether incorporating into affordable rental housing will affect the net operating income of projectsCity-level Rental Housing Market Overviews20Shanghai Rental Housing Market SnapshotSongjia

34、ngZizhuPujiangZhoukangZhangjiangJinqiaoWaigaoqiaoJiadingTaopuLinkongCaohejingJiutingShibei￥Number of Projects449Average Rent*（RMB/sqm/month)14489%AverageOccupancy Rate*157Number of Units(Thousand)Note:*Average rent and occupancy rate for projects that have been in operation for more than 6 monthsSou

35、rce:JLL Research,data as of 30 June 2023Shanghai rental housing market overviewShanghai Rental Housing Stock(June 2023)Rental Housing Projects(in operation)Metro LinesCentral Business DistrictsDecentralised Business DistrictsShanghai Market Overview(June 2023）21|2023 Jones Lang LaSalle IP,Inc.All ri

36、ghts reserved.FengxianJinshanPudongSongjiangMinhangQingpuBaoshanJiadingChangningYangpuXuhuiHuangpuHongkouJinganPutuoShanghai rental housing stock by districts Shanghai rental housing stock by districts(units)Source:JLL Research,data as of 30 June 202322|2023 Jones Lang LaSalle IP,Inc.All rights rese

37、rved.QingpuSongjiangJinshanFengxianMinhangPudongBaoshanJiadingPutuoChangningYangpuXuhuiHuangpuHongkouJinganChongmingShanghai future rental housing supply by districts Existing stockNew supply of R4 rental housing(2H23-2025)New supply of R2 rental housing(2H23-2025)Source:JLL Research,forecast as of

38、June 202323|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Beijing Rental Housing Market SnapshotBeijing Rental Housing Stock(June 2023)￥Beijing Market Overview(June 2023）Number of Projects167Average Rent（RMB/sqm/month）15693%AverageOccupancy Rate54Number of Units(Thousand)Rental Housing Projects

39、(in operation)Metro LinesCentral Business DistrictsBeijing rental housing market overviewWangjingOlympic AreaZhongguancunLizeFinance StreetEast 2nd RingEast ChanganCBD3rd Embassy AreaSource:JLL Research,data as of 30 June 202325|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Beijing rental housi

40、ng stock by districts(units)XichengDongchengChaoyangShunyiTongzhouDaxingFangshanFengtaiMentougouShijingshanHaidianChangpingBeijing rental housing stock by districts Source:JLL Research,data as of 30 June 202326|2023 Jones Lang LaSalle IP,Inc.All rights reserved.HaidianChaoyangChangpingShijingshanMen

41、tougouFengtaiDaxingTongzhouFangshanShunyiDongchengXichengExisting stockNew supply from collectively-owned land(2H23-2025)New supply of R2 rental housing(2H23-2025)Beijing future rental housing supply by districts Source:JLL Research,forecast as of June 202327|2023 Jones Lang LaSalle IP,Inc.All right

42、s reserved.Shenzhen Rental Housing Market Snapshot￥Number of Projects548Average Rent*（RMB/sqm/month)10896%AverageOccupancy Rate*212Number of Units(Thousand)Shenzhen Market Overview(June 2023）Shenzhen Rental Housing Market OverviewShenzhen-Hong Kong Advanced Manufacturing Cooperation ZoneBaan High-Te

43、ch Industrial ParkUniversity TownMatian Advanced Manufacturing Park GuangmingScience CityGuanlan Hi-tech Industrial ParkYutang Advanced Manufacturing Park Ban Xue Gang Hi-tech AreaBaolong Science and Technology CityPingshan Biomedicine Innovation Industrial ParkBaonengScience and Technology Industri

44、al ParkUniversiade Software TownPrivate rental housing projects(in operation)Metro linesCentral business districtsDecentralised business districtsShenzhen Private Rental Housing Stock(June 2023)Note:*Average rent and occupancy rate cover private rental housing projects onlySource:JLL Research,data a

45、s of 30 June 202329|2023 Jones Lang LaSalle IP,Inc.All rights reserved.BaoanGuangmingNanshanLonghuaLonggangFutianLuohuYantianPingshanDapengPrivate rental housing stockAffordable rental housing stockShenzhen rental housing stock by districts Shenzhen rental housing stock by districts(units)30|2023 Jo

46、nes Lang LaSalle IP,Inc.All rights reserved.Source:JLL Research(data as of 30 June 2023),Shenzhen Public Housing Construction and Organisation Project ListBaoanGuangmingNanshanLonghuaLonggangFutianLuohuYantianPingshanDapengShenzhen future rental housing supply by districts Existing stockNew supply o

47、f affordable rental housing(2H23-2025)New supply of R2 rental housing(2H23-2025)31|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:JLL Research,forecast as of June 2023Note:Overall rental housing stock is the sum of units of affordable rental housing and private rental housing as of 2Q23.F

48、uture supply of affordable rental housing refers to the sum of all new units expected to enter the market during 2H23 to 2025,excluding those from the urban village regeneration.China Rental Housing Investment Market OverviewJLL China rental housing investment sentiments surveyJLL invited over 50 in

49、vestors from a diverse background to participate in the“2023 China Rental Housing Investment Sentiments Survey”-we have combined the survey results with our market insights in order to provide a comprehensive overview of the latest investment trends in this fast-evolving sector.Investor ProfileSurve

50、y respondents were based in:Source:JLL China Rental Housing Investment Sentiments Survey 2023Investor ProfileInvestors who participated in the survey include:Mainland China56%Hong Kong,Macao&Taiwan11%Asia Pacific excluding China11%Europe&Americas23%Investment Track Record&Future Investment PlansShar

51、e of respondents investing in rental housing market,%(including developers,SOEs&HNWIs/Family Office)Real estate funds61%Operators9%Insurance companies9%Financial institutions9%Others 12%Already invested and will continue investing in the next 3 years,51%Has not invested yet,but planning to invest wi

52、thin the next 3 years,42%Already invested,but not considering further investment,4%Will not consider,3%93%Investors will invest in rental housing within the next 3 years33|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Reasons for InvestmentShare of respondents choosing reasons to invest in rent

53、al housing market(multiple choice),%20232021Source:JLL China Rental Housing Investment Sentiments Survey 2021&2023Rental housing market has entered a period of rapid growth phase and market liquidity improves significantly 84%80%80%55%42%4%Strong demand fundamentals driving steady investment returns

54、Possibility of exit via REITsResilient asset performancePortfolio risk diversificationOthers65%61%45%39%19%19%Strong demand for rental housing Long-term stable rental incomeResilient asset performanceCapital appreciationPortfolio risk diversificationTraditional assets are overpricedMarket liquidity,

55、strong demand fundamentals and REITs exit Rank amongst the top reasons for growing investment appetite34|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Tier-1 and Tier-1.5 markets remain highly sought-afterInvestment MarketsShare of respondents choosing preferred rental housing market(multiple c

56、hoice),%Developed economy with high GDPHigh percentage of non-local residentsStrong demand for rental housingRelatively high price-to-income ratioRental housing investors are primarily focused on Tier 1 and emerging Tier 1 cities such as Shanghai,Beijing,Shenzhen,Guangzhou and Hangzhou.These cities

57、have the following characteristics:Source:JLL China Rental Housing Investment Sentiments Survey 2021&202313%3%3%39%32%58%77%100%2%7%9%13%24%31%45%60%95%100%ShanghaiBeijingShenzhenGuangzhouHangzhouNanjingSuzhouChengduWuhanChongqing35|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Market Positioni

58、ngShare of respondents choosing preferred rental housing market positioningShanghaiBeijingShenzhen Guangzhou HangzhouUpscale Market85%88%88%84%88%Mass Market71%69%64%68%82%Blue-collar and Corporate Dormitory Market25%27%36%40%29%High-end Market18%19%21%20%24%Upscale and mass market rental housing re

59、main investors preferred market positioning55%35%42%97%18%25%71%85%Upscale MarketMass MarketBlue-collar and Corporate Dormitory MarketHigh-end Market Source:JLL China Rental Housing Investment Sentiments Survey 2021&202336|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Invesors continue to seek

60、conversion and development opportunities;developing operational capability emerge as a new trendRental housing investment and operation modelInvestment ModelShare of respondents choosing preferred investment model(multiple choice),%Operation ModelShare of respondents choosing preferred operation mod

61、el(multiple choice),%LeasingInvesting in operation platformDevelopment of new rental housingAcquiring existing properties for conversion29%38%67%95%Acquiring existing properties for conversion and development of newrental housing remain as the predominent investment model.As Chinarental housing mark

62、et matures,investors also start to explore investing inoperating platforms.Some institutional investors have also establishedstrategic partnerships with local developers and operators to expand thebusiness by leveraging their project acquisition and asset managementcapabilities.Building up own brand

63、 through white label managementBuilding up own brand and management Appointing third-party operator29%55%62%Growing number of institutional investors in rental housing market have established their own brands and operating platform while making asset-heavy investments,for example:Source:JLL China Re

64、ntal Housing Investment Sentiments Survey 202337|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Investors continue to focus on value-add and opportunistic opportunities;co-investment model gains popularityRental housing investment strategy and methodInvestment StrategyShare of respondents choosi

65、ng preferred investment strategy(multiple choice),%Investment MethodShare of respondents choosing preferred investment method(multiple choice),%CoreDistressedCore PlusOpportunisticValue-add27%49%55%62%82%Value-add82%of investors prefer value-add assets3-5 years87%of investors holding period is betwe

66、en 3 5 yearsSource:JLL China Rental Housing Investment Sentiments Survey 2021&202320212023Co-investment with domestic capitalCo-investment with domestic operatorsIndependent investmentCo-investment with overseas capitalCo-investment with SOEsCo-investment with domestic developersCo-investment with o

67、verseas operators38|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Internal Rate of Return(2023)Overseas investors require higher internal rate of return for rental housing projectsRental housing investment IRR requirementsInternal Rate of ReturnInvestors IRR requirements for rental housing inve

68、stment,2018,2021 vs.2023:18%5%22%29%20%24%15%20%25%30%35%40%18%IRR(%)200%25%50%31%80%25%50%31%25%100%67%13%25%25%33%18%6%67%24%50%33%24%50%47%100%100%18%DomesticOverseasSource:JLL China Rental Housing Investment Sentiments Survey 2018,2021&2023HNWIs/Family OfficeOperatorsSOEsFinancial ins

69、titutionsInsurance companiesReal estate fundsDevelopersReal estate fundsFinancial institutionsHNWIs/Family OfficeOperators39|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Investor renturn expectation consolidates;further cap rate compression can be expectedStabilized Return ExpectationsInvestor

70、s yield on cost requirements for rental housing investment,2018,2021 vs.2023:Cap Rate Trend ExpectationsInvestors outlook for returns over the next five years0%10%20%30%40%50%60%5.5%Returnexpectation(%)202120232018Increase over 50 bpsIncrease 25-50 bpsIncrease 0-25 bpsRemain unchangedDecrease 0-25 b

71、psDecrease 25-50 bpsDecrease over 50 bps4%2%7%36%29%18%4%87%of respondents believe that cap rate willremain flat or further compress over the next five years.Yield on Cost(2023)5.5%Not Required0%16%42%33%9%Source:JLL China Rental Housing Investment Sentiments Survey 2018,2021&202340|2023 Jones Lang

72、LaSalle IP,Inc.All rights reserved.Asset Acquisition(Sale)Price ExpectationsInvestors price expectations when acquiring(selling)assetsIncrease 20%+Increase 10%-20%Increase 0%-10%Remain UnchangedDecrease 0%-10%Decrease 10%-20%Decrease 20%+2%4%20%49%18%7%0%2%0%5%31%33%22%7%Acquisition86%of respondents

73、 expect the acquisition price to remain unchanged and decrease by 0%-20%.Among them,33%of respondents expect the price to decrease by 0%-10%,and 22%expect a decrease by 10%-20%.UnchangedDecrease by 0-20%Sale74%of respondents expect the sale price to remain unchanged and decrease by 0-20%.Among them,

74、18%of respondents expect the price to decrease by 0%-10%,and 7%expect a decrease by 10%-20%.20%of respondents expect the sale price to increase by 0%-10%.UnchangedDecrease by 0-20%Increase by 0-10%Pricing gap between buyers and sellers still existsRental housing investors price expectationsSource:JL

75、L China Rental Housing Investment Sentiments Survey 202341|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Exit Cap RatesShare of respondents choosing expected exist cap rate,%Exit ChannelsShare of respondents choosing preferred exit channels(multiple choice),%Majority of investors still believe

76、that a single asset for portfolio sale will be the main mode of exit.With the succssful listing of rental housing C-REITs,exit via C-REITs has emerged as one of the main exit channels.The feasibility of exit via C-REITs is encouraging long term rental housing investors to establish pre-REITs fund an

77、d acquire core/core+projects with stable operations.The rise of such invesos will further improve marketliquidity of Chinas rental housing investment market.4.5%-5.0%,66%5.0%,7%4.0%-4.5%,27%93%of respondents expect to exit by the cap rate of 4.0%-5.0%REITs emerged as one of the main exit channels;in

78、vestors reached consensus on exit cap rates91%84%73%7%2%Portfolio saleSingle asset saleExit via C-REITsExit via oversea REITsOthersSource:JLL China Rental Housing Investment Sentiments Survey 202342|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Turning todays challenges into opportunitiesChalle

79、nges of rental housing marketsChallengesShare of respondents choosing major challenges of rental housing market(multiple choice),%61%48%42%32%29%23%23%16%13%10%20232021As China rental housing market enters a period of rapid growth with supportive policies,“lack of financial support”,“excessive taxat

80、ion”and“lack of established operators in the market”are no longer challenges of rental housing market78%65%62%56%49%31%27%25%2%Assets are overpricedIncreasing supply of R4 projectsDifficulty in acquiring land and/or assetsLow market liquidity poses challenges to future exitUncertainty due to politic

81、al factorsLow profitabilityLow payback periodLow market transparencyRental price sensitivity is high and demand is unstableSource:JLL China Rental Housing Investment Sentiments Survey 2021&2023Assets are overpricedDifficulty in acquiring land and/or assetsUncertainty due to political factorsLow payb

82、ack periodLack of financing supportLow market liquidity poses challenges to future exitExcessive taxationLow profitabilityLack of established operators in the marketLow market transparency43|2023 Jones Lang LaSalle IP,Inc.All rights reserved.REIT exit channels and supportive policies encourage affor

83、dable rental housing schemeInvestors attitudes to“Affordable Rental Housing”Affordable Rental HousingShare of respondents choosing affordable rental housing,%Yes(Wholly),24%Yes(Partially),49%No,27%73%of respondents choosing affordable rental housingPros88%Exit via C-REITs78%Tax benefits73%Supportive

84、 financial policies48%Wider range of property types for investment18%Wider customer acquisition channelsCons93%Limited tenant groups 73%Restriction on rental pricing53%Inflexible lease terms“Specialindustrylicense”,“market-orientedrentalhousingpermit”and“affordable rental housing permit”arethree way

85、s to operate rental housing incompliance with regulations.Investorsneed to consider the pros and cons,then to make an appropriate choice.84%of respondents choosing“affordable rental housing permit”as exit via C-REITs increases asset liquidity.Affordable Rental Housing PermitMarket-Oriented Rental Ho

86、using PermitSpecial Industry License67%of respondents choosing“market-oriented rental housing permit”as it retains operational flexibility and rights to enjoy financial and tax benefits.62%Of respondents choosing“special industry license”as it largely retains operational flexibility and enables to o

87、ptimize revenue by daily rental.Source:JLL China Rental Housing Investment Sentiments Survey 202344|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Shanghai Rental Housing TransactionsShanghai rental housing investment volume at record-highTo date,total rental housing transaction volume in Shangh

88、ai is RMB15.61 billionShanghai Rental Housing Transaction Volume 2021-2023Source:JLL*JLL estimates1.51.21.51.72.40.91.72.31.21.32.40.00.51.01.52.02.53.0202120222023Transaction Volume(RMB Billion)第一季度第二季度第三季度第四季度预测2022:16 transactions RMB 6.1b2023:14 transactionsRMB 7.2bQ1Q2Q3Q4Forecast46|2023 Jones

89、Lang LaSalle IP,Inc.All rights reserved.Value-add opportunities continue to be highly sought-after;Project locations are evenly distributed throughout the cityRental Housing Transaction Analysis(by transaction volume)Core,26%Value-add,74%Investment StrategyWithin Inner Ring,18%Btw Inner&Middle Ring,

90、22%Btw Middle&Outer Ring,22%Outside of Outer Ring,38%Percentage of Transactions by LocationCoreValue-add5%38%of core assets are located within Middle Ring where main business districts and companies are clustered with huge rental demand,strong tenant leasing capacity and stable operation.59%of value

91、-add assets are located outside of Middle Ring where existing assets have cost-performance,strong rental demand and capital appreciation.24%16%14%25%27%57%32%内环内内中环间中外环间外环外Source:JLLWithin Inner RingBtw Inner&Middle RingBtw Middle&Outer RingOutside of Outer Ring47|2023 Jones Lang LaSalle IP,Inc.All

92、rights reserved.Main AuthorsSherrilShengResearch Director,ChinaSherril.SSilvia ZengHead of Research,South ChinaSilvia.ZYang MiHead of Research,North ChinaYang.MCelia ChenSenior Manager,North ChinaCelia.CStanley ShihAnalyst,East ChinaStanley.SVeronica XuSenior Analyst,South ChinaVeronica.XJunyaWeiVic

93、e President of Hotel and Hospitality Group,Greater ChinaJunya.WChloe ZhangManager of Hotel and Hospitality Group,Greater ChinaChloe.ZBusiness ContactsEric PangHead of Capital Markets,ChinaEric.PLing SunHead of Capital Markets,East ChinaLing.SBruce PangChief Economist and Head of Research,Greater Chi

94、naBruce.PDaniel YaoHead of Research,ChinaDaniel.YDisclaimerThe information contained in this document is proprietary to Jones Lang LaSalle and shall be used solely for the purposes of evaluating this proposal.All such documentation and information remains the property of Jones Lang LaSalle and shall

95、 be kept confidential.Reproduction of any part of this document is authorized only to the extent necessary for its evaluation.It is not to be shown to any third party without the prior written authorization of Jones Lang LaSalle.All information contained herein is from sources deemed reliable;howeve

96、r,no representation or warranty is made as to the accuracy thereof.About JLLFor over 200 years,JLL(NYSE:JLL),a leading global commercial real estate and investment management company,has helped clients buy,build,occupy,manage and invest in a variety of commercial,industrial,hotel,residential and ret

97、ail properties.A Fortune 500 company with annual revenue of$20.9 billion and operations in over 80 countries around the world,our more than 105,000 employees bring the power of a global platform combined with local expertise.Driven by our purpose to shape the future of real estate for a better world,we help our clients,people and communities SEE A BRIGHTER WAYSM.JLL is the brand name,and a registered trademark,of Jones Lang LaSalle Incorporated.For further information,visit .JLL Official WeChat AccountJLL Capital Markets Official Account