Gelonghui, June 6 | BOC International issued a report saying that in view of last year's low base, it is believed that the mainland real estate market will gradually recover in the second half of the year, and more policies will be introduced to increase the affordability of buyers, including lowering down payments and mortgage interest rates. Furthermore, as private developers launch more completed projects for sale, it is believed that the concerns of buyers can be mitigated. The bank expects mainland housing sales to increase by 5% to 10% year-on-year in the second half of the year. Furthermore, the bank indicates that among the top 50 developers (according to contract sales), the market share of state-owned enterprises increased to 68.1% in the first five months of this year. It is expected that the market share will peak at around 70% in the second half of the year, while some private enterprises will regain market share after launching more completed projects. The bank suggested first selecting leading state-owned enterprises with strong sales execution and sufficient land reserves, and reiterated that Yuexiu Real Estate (00123.HK) was the first choice, with a rating of “buy”. At the same time, it is optimistic about China Resources Land (1109.HK), which has a “buy” rating. For investors with a high risk appetite, the bank suggests waiting for signs of improvement in sales and for the market to reevaluate the lowest-valued private enterprise leaders, such as Xuhui (0884.HK) and Agile (3383.HK). Opportunities may appear in the fourth quarter of this year.
研报掘金 | 交银国际:料下半年内房销售同比升5%至10% 首选越秀地产
Research Report Nuggets | BOC International: Housing sales are expected to rise 5% to 10% year-on-year in the second half of the year, Yuexiu Real Estate is preferred
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