Favourable policies have once again strengthened real estate stocks. As of press release,$SINO-OCEAN GP (03377.HK)$,$SHIMAO GROUP (00813.HK)$,$CIFI HOLD GP (00884.HK)$,$AGILE GROUP (03383.HK)$,$LONGFOR GROUP (00960.HK)$They rose more than 43%, 28%, 23%, and 19%, respectively.

In terms of news, in the context of the Politburo meeting's proposal to “optimize incremental housing,” several cities recently introduced new regulations to reduce shared floor space, which once again triggered market discussions on shared floor space.

According to market sources, the 2024 edition of the “Shenzhen Building Design Rules” will be officially released in the near future. The revisions include reducing the size of residential stalls, effectively increasing housing rates, and implementing a 150-meter height limit for houses and dormitories. In response, the Shenzhen Municipal Bureau of Planning and Natural Resources told reporters that the relevant documents are expected to be published on the official website next week. The details are subject to the published documents.

In addition, the Housing and Urban-Rural Development Bureau of Lin'an District of Hangzhou issued a notice a few days ago. Following a study and decision by the Lin'an District People's Government, a batch of commercial housing will be purchased for use as public rental housing. The listing requirement is within Lin'an District of Hangzhou.

Regarding the policy of purchasing commercial housing in Lin'an, Hangzhou for public rental housing,$E-HOUSE ENT (02048.HK)$Yan Yuejin, director of research at the Research Institute, said that this policy is the first of its kind in the country. It also shows that it is the implementation of the Politburo Central Committee meeting to “coordinate research on policies and measures to absorb existing real estate and optimize incremental housing”. This also implements a new direction of elimination of housing companies' inventory.

Recently, over 50 cities have expressed support for housing “trade-in”

In addition to the above benefits, the Guangzhou Huadu District Real Estate Industry Association, the Huadu Member Service Committee of the Guangzhou Real Estate Agents Association, and the Guangzhou Huadu District Building Decoration Association recently announced that they will jointly carry out a commercial housing trade-in “new purchase” campaign from May 15, 2024 to May 14, 2025 to promote “small for big”, “trade-in” and “low configuration for high configuration” of commercial housing.

However, this is not the first case of “trade-in” in Guangzhou. According to monitoring data from the China Index Research Institute, as of May 6, more than 50 cities across the country have expressed support for housing “trade-in”, including Shanghai and Shenzhen, which have introduced relevant policies.

In response, Guotai Junan Securities pointed out that under the influence of the policy, it is expected that the gradual increase in market confidence will lead to stable sales, while the land market will usher in adjustments in the scale, pace, and direction of supply in many places. Looking at the sales market, the recent intensive implementation of policies has helped repair market expectations and led to an increase in market trading activity.

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