As reported by the Wisdom Finance app, mainland real estate stocks have been generally falling. As of the time of publication, Shimao Group (00813) fell 5.62% to HKD 0.84; Seazen (01030) fell 4.11% to HKD 1.4; Sunac China (01918) fell 2.33% to HKD 1.26; R&F Properties (02777) fell 2.11% to HKD 0.93.

According to statistics from institutions, real estate transactions have seen a wider decline before the Dragon Boat Festival holiday this year. From June 8th-9th, the sales area of real estate in 28 cities decreased by 50.9% year-on-year, compared to a 25.2% decrease for the entire month of May and a cumulative year-on-year decrease of 33.5% for the first five months. In addition, multiple real estate companies recently disclosed their sales performance for May 2024 and the first five months. Shimao Group's cumulative contract sales for the first five months amounted to RMB 13.78 billion, a decrease of 42.25% year-on-year; Yuexiu Property's cumulative contract sales for the first five months amounted to RMB 40.092 billion, a decrease of approximately 42.3% year-on-year; Seazen's cumulative contract sales for the first five months amounted to RMB 19.754 billion, a decrease of 44.67% year-on-year.

Tianfeng Securities believes that with the fading of the high base effect in the second half of 2024, the year-on-year sales decline is expected to further narrow, and the probability of a second decline is relatively low. Before the fundamentals stabilize, the bank believes that demand is unstable and policies are unstable. In the short term, it continues to be bullish on the sustained driving of the sector by supply and demand policies in both directions.