This article examines the dramatic increase in property management fees for luxury real estate in major Chinese cities like Shanghai, Beijing, and Shenzhen. Fees have escalated from historical averages around 3.6 yuan per square meter per month to as high as 36 yuan in premium developments such as Shanghai’s Haitai North Bund. The rise is driven by upgraded amenities, rising operational and labor costs, and a shift from basic services to comprehensive asset management. In contrast, management fees for existing residential properties are declining in many cities, reflecting a market correction. Expert analysis from figures like Song Ziqian of Zhongwu Zhiku highlights the economic logic behind this divergence, emphasizing a new pricing paradigm focused on asset protection and experience management. The trend has significant implications for investors, developers, and the broader real estate sector, affecting total cost of ownership, investment yields, and market dynamics in China’s post-boom property landscape.
From 3.6 to 36 Yuan per Sqm: The Astonishing Rise of Luxury Property Management Fees in China’s Elite Real Estate
