l　In the third quarter, rents in both the luxury marketand mid-market fell slightly to average US$19.17 per sq.m per month and US$10.40 per sq.m per month.Over 2005 as a whole, high quality residential rentalsfell 3-5%.

l      In the same period, average vacancy in the luxury market saw a slight decrease to 15.3%, and that in mid market decreased to 14.3%. Little new supply was released to the market in the 4th quarter.

l　From January to November, the total residential floor space sold was 18,427,000 sq.m, an increase of 38.5% compared to the same period in 2004. The sales value of these developments was RMB 101.89 billion, an increase of 64.5% compared to the same period in 2004.

l　 In a recent survey of China’s most livable cities conducted by Horizon Group, Beijing fell off the list of China’s 10 most livable cities to 15th place from No. 3 last year, due to increasing traffic, rising housing prices and heavy pollution. A large number of metro lines and roads are under construction or under planning and the city infrastructure is being improved. All of these will enhance Beijing’s livability and quality of life.

Overall Rental remains stable

• The Beijing office leasing market was active in February.Net effective rents for Grade 'A' offices have experienced a mild increase of 0.7%. Overall, net effective rents for Grade 'A' offices rose to US$26.20 per sq.m. per month. Rentals are expected to rise due to completion of new supply this year.

Vacancy decline significantly

• The overall Grade 'A' office vacancy rate decreased to10.7%. Office space take-upwas most significant in WinlandInternationalFinanceCenter, LG BeijingTower,FortunePlaza and CEC Tower B.

• Winland International Finance Center has experienced a surge of office space net take-up, much of this due to new demand from finance houses such as JP Morgan, Goldman Sachs and Import & Export Bank of China.