Jingu Financial News | Mainland real estate stocks rebounded in early trading, with Zhongliang Holdings (02772) up 6.92%, Sunac (01918) up 5.26%, R&F Properties (02777) up 3.37%, China Resources Land (01109) up 3.01%, Longfor Group (00960), China Overseas (00688) up over 2%.
CITIC Securities stated that the real estate policy determination is firm and implemented step by step. The bank expects that the real estate market is set to stabilize in batches and regions starting from first-tier cities. The bank predicts that by 2025, China's commodity housing sales, new construction area, completed construction area, and real estate development investment will decrease by 1.3%, 5.2%, 24.3%, and 1.5% respectively compared to the previous year. Except for completed construction, the decline in various indicators is narrowing. With the new wave of high-quality land parcels in the land market, the profitability and sales differentiation in the real estate development industry may become more apparent.
Haitong International stated that in October 2024, over 50% of the top 100 real estate companies had a year-on-year positive growth in monthly sales. The highest monthly sales in China Overseas Development were 39.5 billion yuan, followed by Poly Developments at 38.1 billion yuan, China Merchants Shekou Industrial Zone Holdings, Greentown China, and China Resources Land had monthly sales ranging from 20.8-27.9 billion yuan, Yuexiu Property, C&D Intl Group, and China Vanke Co.,Ltd. were in the range of 16.3-19.8 billion yuan. Looking at the monthly trading volume growth rate in October 2024, 27 of the top 50 real estate companies achieved year-on-year positive growth. Among them, PowerChina Real Estate had the highest year-on-year growth rate of 218.2%, followed by Poly Real Estate at 204.7%. In the list of declining percentages, Central China and others saw declines exceeding -60%. The bank maintains an industry rating of 'outperform the market.' It believes that recent industry policies have significantly loosened, the landscape has improved, space has opened up, and the value of quality companies will become more prominent.
