Jinwu Financial News | HTSC stated that on the 25th, the Central Committee held a Political Bureau meeting, which proposed to "continue to consolidate the stability of the Real Estate market". The measures mainly focus on urban village renovations, high-quality housing, and the collection of existing housing. At the same time, it explained two aspects: on one hand, there has been some success in stopping the decline and stabilizing, especially reflected in sales. In Q1 2025, the total transaction area of new and second-hand housing in the 19 key cities increased by 18% year-on-year. On the other hand, the foundation for the current stabilization of the Real Estate market needs to be consolidated, particularly in terms of housing prices, hence incremental policies are needed to continue to exert force.
The meeting further confirmed the direction of incremental policies. Considering that first-tier cities have greater policy elasticity, the bank is more bullish on the recovery pace of core cities represented by first-tier cities, as well as on the valuation recovery of real estate companies that have reserves or newly acquired resources in corresponding regions. It continues to recommend real estate stocks that possess the "three good" logic of "good credit, good city, good product", while property management companies with stable performance and cash flow are also expected to benefit from the market stabilization.
