CHINA Law and Practice Contributed by: Nancy Zhang, Xiaoying Tian and Liangqian Ying, JunHe LLP
1. General 1.1 Main Sources of Law The laws promulgated at the national level include: • the Civil Code; • the Land Administration Law; • the Urban and Rural Planning Law; • the Construction Law; and • the Urban Real Estate Administration Law. 1.2 Main Market Trends and Deals During 2025, office space remained the most sought- after asset class in terms of transaction value in the real estate market of the PRC, representing 34% of the total transaction value. Mixed-use complexes, apartments/hotels, and retail properties followed, with transaction value shares of 17%, 14%, and 14% respectively. Among major cities, Shanghai main - tained its leading position in large transaction mar - ket, with a total transaction value of approximately RMB49.9 billion, representing 37% of the national total (source: Colliers International Group Inc, Review of Large Transaction Investments in China’s Commer - cial Real Estate Market in 2025, 30 January 2026). Notable transactions in 2025 include a consortium formed by China Overseas Land & Investment Ltd. (00688.HK), China Merchants Shekou Industrial Zone Holdings Co., Ltd. (001979.SZ), and CTG Investment acquiring 90% equity interests in two project com - panies for RMB15.478 billion, thereby obtaining the development rights to two land parcels located in Shanghai Xuhui. The two parcels have a total planned gross floor area of approximately 534,000 square metres, covering residential, commercial, office, R&D and public ancillary facilities. Additionally, Metallurgi - cal Corporation of China Ltd. (01618.HK) disposed of its entire 100% equity interest and associated debt claims in MCC Real Estate Group Co., Ltd. to Minmet - als Real Estate Holdings for a total consideration of RMB31.236 billion. “Since the beginning of 2025, the real estate devel - opment and operation industry has continued to experience sluggish sales performance and declining housing prices. Although the external financing envi - ronment remained accommodative, the improvement
in financing conditions for real estate enterprises has been limited. Against this backdrop, developers lack the incentive to invest, leading to a continued con - traction in development investment”. (Source: China Lianhe Credit Rating Co., Ltd, Credit Risk Outlook for the Real Estate Development and Operation Industry On 31 December 2025, the China Securities Regula - tory Commission (CSRC) issued the Announcement on Launching the Pilot Program of Commercial Real Estate Investment Trusts (Commercial REITs), thereby officially initiating the pilot programme for commer - cial REITs, which permits underlying assets to include mixed-use complexes, hotels, retail properties and office buildings. 2026, 25 December 2025). 1.3 Proposals for Reform 2. Sale and Purchase 2.1 Categories of Property Rights There are two main categories of property rights under PRC laws. • Ownership right is the right to possess, use, receive proceeds from and dispose of the proper - ties of the owner. Under PRC law, land may only be owned by the state or collectively owned by farmers. • Usufructuary right is the right to possess, use and receive proceeds from the properties owned by other persons, such as land use rights, contracting rights for farmland, farmer’s rights to homestead land, rights of habitation and easement rights. 2.2 Laws Applicable to Transfer of Title National laws and regulations mainly include: • the Civil Code; • Urban Real Estate Administration Law; • the Interim Regulations Concerning the Assign - ment and Transfer of the Right to the Use of State- Owned Land in Urban Areas; and • the Interim Regulation on Real Estate Registration.
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