According to the data on the official website of Shanghai Real Estate Trading Center's "Online Real Estate", nearly 960 second-hand housing transactions were signed in the two days before the Dragon Boat Festival, exceeding the total number of transactions during the 5-day "May Day" holiday. The rebound in second-hand housing transactions means that the replacement chain can be activated as soon as possible.
According to statistics from real estate agencies, during the week of the "5.28" new policy, the number of visits and transactions of real estate projects in Guangzhou increased by 21% and 37% respectively compared to the previous week.
According to statistics from the Shenzhen Real Estate Agency Association, during the three-day Dragon Boat Festival, the transaction volume of first-hand residential property in Shenzhen increased by 24% year-on-year, while second-hand residential property increased by 100%.
On June 7, Premier Li Keqiang of the State Council presided over an executive meeting of the State Council to listen to reports on the current situation of the real estate market and the next step in constructing a new model for real estate development. CITIC Securities believes that this meeting can be seen as a summary of the new situation and changes in the real estate market and related policies since the 430 Political Bureau meeting, as well as a look to the future. The meeting continued the policy direction of digesting existing housing from the 430 Political Bureau meeting, and put forward the specific implementation requirements of "liberating ideas and broadening horizons".
According to research reports from CITIC Securities, the real estate industry affects the vital interests of the people, and is related to the overall operation of the economy and financial stability. Under a series of policies, the real estate market in core cities and core regions has shown signs of structural recovery, but there is still a long way to go in digesting existing housing, and new policies need to be introduced.
Looking to the future, CITIC Securities believes that new policies to reduce housing inventory and the gradual improvement of fundamentals will be catalysts for the valuation recovery of real estate companies. Bullish on development companies with strong product capabilities and unimpeded financing channels, real estate transaction service providers, and property service companies with stable dividends.
According to research reports from China International Capital Corporation, the current real estate policies are being implemented with greater intensity than in previous cycles, and total demand is corresponding stabilizing. Market confidence in the eventual turning point of the real estate cycle has significantly increased. However, it is also necessary to recognize that under the new situation in the real estate industry, the structural evolution of the first and second-hand housing markets is accelerating, and the total supply pressure of new and second-hand housing is becoming more evident. The inertia of the real estate cycle is strengthening, and we should have sufficient patience while waiting for the turning point.
Currently, the market is in a stage of balancing continued policy implementation and waiting for local fundamentals to stabilize. China International Capital Corporation believes that opportunities for medium-term trading may appear frequently during this stage, and investors should choose opportunities to invest in related symbols with high value, low cost, and strong operating elasticity.
Real estate related industry chain companies:
China Overseas Development (00688), C&D International Group (01908), Yuexiu Property (00123), Greentown China (03900), Sunac China (01918), Longfor Group (00960), Sino-Ocean Group (03377), China Vanke (02202), and China Resources Land (01109), etc.
Property management companies: China Resources Mixc (01209), Poly Property Services (06049), Midea Real Estate (03990), etc.
Real estate agency: KE Holdings-W (02423), CG Services (06098)