CITIC Securities believes that the overall scale of China's real estate industry is indeed difficult to grow significantly due to long-term factors, but we are still optimistic about the demand potential of core cities after limiting policy optimization. We estimate the potential incremental demand of separated households from overseas households in 19 megacities is about 310 million square meters, which is 1.5 times the current inventory of new homes and 2.1 times the sales area in 2023. The demand potential for new home purchases in all four first-tier cities exceeds 30 million square meters, totaling 3.3 times the market inventory and 4.6 times the sales scale of new homes in 2023. Optimistic about the structural demand for home purchases brought to core cities by “secondary urbanization”, optimistic that the business layout is highly focused on core cities, and the investment value of development enterprises with outstanding product capabilities and smooth financing channels, as well as real estate transaction service providers and leading property service companies that focus on existing stocks.