China developers eye youth apartment concepts amid office inventory glut

Some mainland Chinese developers are shifting their attention towards mini apartments aimed at young professions, converting land that was originally designated for commercial and office use.

In April, a project in Shanghai featuring 203 fully furnished studios apartments, some as small as 20 square metres, initiated its pre-sale marketing activities. Named @way, the building sits a short walking distance to a nearby subway station. The 20 square metre units are priced at 0.9 million yuan (HK$1.1 million), compared to a general project nearby, which lists an 88 square metre unit at about 5 million yuan.

Nearly 90 per cent of the studios have been sold in less than one month.

Jet Dong, the marketing head of @way, describes the project as an investment-oriented youth apartment, targeting 18 to 36-year-olds who’ve recently kickstarted their careers. He says it also appeals to those seeking out a social living environment via public spaces such as a gym and shared kitchen facilities.

Jingrui Holdings, the developer of the project, acquired the land in 2015, while the land use was designated for commercial use as a shopping mall or office building.