Investment Rating - The report maintains an "Outperform" rating for the real estate industry [8] Core Insights - The real estate market is showing signs of stabilization, with policies expected to support recovery in 2026. The emphasis is on the financial attributes of real estate and its macroeconomic significance [17][19] - In December 2025, the top 100 real estate companies reported a sales decline of 23.8% year-on-year, with an annual decline of 15.9% for the entire year [16][17] - The report suggests focusing on three areas for investment opportunities: commercial real estate, second-hand brokerage, and property services, along with developers with strong product capabilities [19] Summary by Sections Sales Performance - In December 2025, the sales figures for the top 100 real estate companies showed a year-on-year decline of 23.8%, with cumulative sales for the year down 15.9% [16][17] - The top 10 companies had a sales decline of 13.1%, while the next tiers saw declines of 27.9% and 23.8% respectively [16] Market Trends - The report indicates that the new housing market is stabilizing, while the second-hand market is expected to see an increase in volume with stable prices [2] - The report highlights a significant drop in new and second-hand housing transaction areas, with declines of 21.18% and 21.75% year-on-year respectively [6] Policy Outlook - The report anticipates stronger policy support for the real estate market in 2026, aiming to boost market confidence and stabilize expectations [17][19] - The emphasis on "good housing" standards is expected to guide the industry towards quality improvement rather than mere expansion [4][18] Stock Market and Credit Bonds - The A-share real estate sector outperformed the market with a weekly increase of 5.07%, while the Hong Kong real estate sector rose by 3.04% [21][33] - The issuance of real estate credit bonds reached 6.38 billion yuan, with a net financing amount of 0.457 billion yuan [21][40] REITs Market - The REITs index increased by 1.74%, with the property REITs index rising by 2.27% [42][55] - The total transaction volume for REITs was 1.615 billion yuan, showing a significant increase compared to previous weeks [55]