Source: Finance Association

Due to continued favorable policies, Hong Kong domestic housing stocks once again showed a strong upward trend today.

As of press release,$CHINA VANKE (02202.HK)$An increase of more than 11%,$CH OVS G OCEANS (00081.HK)$An increase of more than 10%,$YUEXIU PROPERTY (00123.HK)$increased by 10%,$LONGFOR GROUP (00960.HK)$An increase of more than 7%,$GREENTOWN CHINA (03900.HK)$,$SHIMAO GROUP (00813.HK)$Other individual stocks also followed suit.

According to the news, according to data from the China Index Research Institute, in April, the average sales price of newly built homes in 100 cities rose 0.27% month-on-month and 1.08% year-on-year. In April, the average price of newly built homes in 100 cities across the country was 16,355 yuan/square meter. 41 cities rose month-on-month, 34 cities fell month-on-month, and remained flat in 25 cities.

Furthermore, according to data from the Shenzhen Real Estate Information Platform, the number of second-hand housing units transferred in Shenzhen in April was 4,171, up nearly 9% month-on-month and 31% year-on-year, a record high in the past three years. The upward signal on the data side improved market expectations to a certain extent.

As of press release,$HSI Sub Indices – Property (800154.HK)$It rose 2.56% to a new high.

What is more noteworthy is that the recent intensive promotion of a package of policy measures by the central government has also continued to heat up the market's short-term sentiment towards real estate stocks.

On April 30, the Political Bureau of the CPC Central Committee held a meeting. The conference emphasized the need to combine new changes in the relationship between supply and demand in the real estate market and the people's new expectations for high-quality housing, to comprehensively study policies and measures to absorb the stock of real estate and optimize incremental housing, and urgently construct a new model of real estate development to promote high-quality real estate development.

The real estate team of Guojin Securities said in an April 30 report that the central government's proposal to digest existing real estate and optimize incremental housing may have a historic impact on the development of the industry.

Historically, in the development of the real estate industry over the past 20 years, the central government made similar statements: “We need to resolve real estate inventory” in December 2015 and “digest real estate inventory in an orderly manner” in April 2016. Then, driven by shed changes to inventory, the real estate market broke out of its trough and emerged from a bull market.

Meanwhile, the Ministry of Natural Resources recently issued the “Notice on Accomplishing the Work Related to Residential Land Supply in 2024", which has further drawn the market's attention to inventory removal in the real estate industry.

The notice suggests that all regions should promptly optimize the scale, layout and structure of commercial office land and residential land according to market demand, and improve the residential land supply regulation mechanism corresponding to the commercial housing removal cycle and residential land stock.

Among them, if the commercial residential removal cycle exceeds 36 months, sales of new commercial residential land should be suspended, and efforts should be made to revitalize the stock until the commercial residential removal cycle falls below 36 months.

Zeng Fanzhe, an analyst at China Post Securities, also said in the April 30 report that the optimization of purchase restriction policies in various regions is beneficial to the restoration of real estate confidence. It is expected that Tier 1 and 2 cities will continue to loosen the property market in the future. Possible directions of subsequent supply-side policies include removing inventory in key cities and revitalizing inventory assets across the country. The pace of independent adjustment of restrictive policies by local governments in terms of demand-side policies is expected to accelerate.

editor/tolk