According to the Smart Finance app, real estate stocks continue to fall, with Sunac (01918) down 8.84% at HKD 1.34, Zhongliang Holdings (02772) down 8.29% at HKD 0.166, Shimao Group (00813) down 5.15% at HKD 0.92, Sino-Ocean Group (03377) down 4.21% at HKD 0.455 and R&F Properties (02777) down 2.08% at HKD 0.94, as of press time.

According to monitoring data from the Zhuge Data Research Center, in May 2024, the sales area of newly built commodity residences in the 30 key monitored cities was 10.6112 million square meters, up 10.1% month-on-month and down 29.9% year-on-year. From January to May, the sales area of newly built commodity residences in the 30 key monitored cities was 47.4562 million square meters, down 39.5% year-on-year. The report pointed out that due to the influence of factors such as the May Day holiday, the trading volume in the previous period was relatively low, and the market has only recently shown positive changes. It is not enough to significantly lift the overall heat in May, and the month-on-month growth is limited. At the same time, the monthly and cumulative transaction performance is still not as good as last year.

Guosen Securities believes that although there are differences in the magnitude and sustainability of the real estate market improvement, there is consensus in the market that there is improvement. Although it is still uncertain when new houses will stop falling, and it is difficult to determine the true value of real estate assets, real estate companies with good layouts at 1x PB should be at the top of the wave band. At present, whether it is the fundamentals or the policy intensity, it is obviously better than the accelerated downturn in April. The bank believes that it will not fall to the low point at that time. Therefore, although the real estate sector is still waiting for the true recovery of the real estate market in the medium and long term, it is clear and has a high probability of winning in the short term.