Recently, many cities, including Xiamen, Dalian, Qingdao, and Kunming, have successively started the intention registration work for the distribution of indemnificatory apartments.

Some experts pointed out that the next policy focus will be on acquisition and storage for use as indemnificatory apartments, while promoting overall planning and investigation of demand for indemnificatory apartments.

Wang Xiaomeng, chief analyst at Zhuge Data Research Center, stated that the construction of indemnificatory housing is a key link in the development of the real estate market and is necessary for housing security for residents with low or medium incomes.

In the past, the construction of indemnificatory housing has mainly focused on new land acquisition and construction, while the current emphasis is on acquiring existing inventory of commercial real estate. It is expected that the scope of acquisition and storage will gradually expand and the pace of implementation will accelerate.

On July 30th, the Political Bureau of the CPC Central Committee held a meeting. The meeting stressed the need to implement new policies to promote a stable and healthy development of the real estate market, to persist in the combination of digesting existing inventory and optimizing new supply, actively support the acquisition and storage of existing commercial real estate for use as indemnificatory apartments, and further improve the work of indemnificatory housing and accelerate the construction of a new mode of real estate development.

Puyin International pointed out that the focus of real estate policy is still on helping real estate companies digest inventory.

The bank believes that the key factor in reversing the downturn in the real estate market is still the government's help in clearing the inventory. There is still room for the scale and manner of government support for inventory digestion.

In terms of demand, it is expected that the housing purchase restrictions in first-tier cities will be further relaxed. In addition, the government may provide tax incentives and subsidies to home buyers.

Real estate-related industry chain companies:

China Overseas Land & Investment Ltd (00688), C&D International Group Co., Ltd. (01908), Yuexiu Property Company Limited (00123), Greentown China Holdings Limited (03900), Sunac China Holdings Limited (01918), Longfor Group Holdings Limited (00960), Sino-Ocean Group Holding Limited (03377), China Vanke Co., Ltd. (02202), China Resources Land Limited (01109), and Agile Group Holdings Limited (00884).

Property management companies include China Resources MIXC (01209), Poly Property Services (06049), China Overseas Property Services (02669), and Midea Real Estate (03990).

Real estate intermediaries: Ke Holdings (02423), CG Services (06098)