Core Viewpoint - The real estate market is gradually stabilizing, with new home prices in major cities showing signs of recovery, although some cities continue to experience price declines [1][3]. Group 1: Market Trends - In May, new home prices in Hangzhou increased by 0.8% month-on-month, leading the 70 cities surveyed, while Shanghai followed with a 0.7% increase [3][10]. - The average price of new homes in Shanghai reached a historical high of 90,691 yuan per square meter in May, driven by the introduction of high-end properties [11]. - The overall sales area of new homes in May was 70.53 million square meters, with a sales value of 70.56 billion yuan, reflecting a month-on-month increase of 10% and 13% respectively [4]. Group 2: Regional Analysis - In Hangzhou, the average price of new homes has surpassed 10,000 yuan per square meter, indicating a shift towards higher quality housing [3]. - The real estate market in South China, particularly in Nanning, is primarily driven by "just demand," with a significant portion of sales focused on affordable and improvement-type housing [14][15]. - The market in Nanning has seen a continuous increase in new home prices for six months, with a month-on-month increase of 0.4% in May [13]. Group 3: Policy and Future Outlook - The State Council has emphasized the need for policy optimization to stabilize expectations and activate demand in the real estate market [4]. - Analysts suggest that the current market differentiation is a norm, with core cities showing resilience while lower-tier cities face ongoing price declines [3][9]. - Future developments in Hangzhou and Shanghai are expected to push new home prices higher, with several high-end projects set to enter the market [8][12].

Investment Rating - The industry rating is "Outperform the Market" [6][67] Core Views - The report highlights that the downward trend in cement and glass prices continues, while urban renewal initiatives are actively promoted. The Ministry of Housing and Urban-Rural Development reported that 5,679 old urban residential areas were newly started for renovation from January to April, with over 50% opening rates in six regions [2][11] - Central government financial support for urban renewal is expected to exceed 20 billion yuan, with various local governments implementing measures to stimulate real estate market demand [2][11] - Short-term factors include the emphasis on stabilizing the real estate market amid growth pressures and the gradual alleviation of risks associated with major real estate companies, which is beneficial for the building materials sector [2][11] - Long-term factors suggest that the opening of the interest rate reduction channel in Europe and the US may provide more room for monetary and fiscal policies in China, with expectations for policies to stabilize real estate transactions and prices [2][11] Summary by Sections Recent High-Frequency Data - As of June 6, 2025, the average price of bulk P.O 42.5 cement in China is 372.6 yuan/ton, down 0.6% week-on-week and down 4.6% year-on-year [3][12] - The average factory price of glass (5.00mm) is 1,205.7 yuan/ton, down 2.0% week-on-week and down 27.3% year-on-year [3][20] Investment Recommendations - The report suggests focusing on three main lines for investment: 1. High-quality companies benefiting from stock renovation, such as Weixing New Materials, Beixin Building Materials, and Tubao [4] 2. Undervalued stocks with long-term alpha attributes, such as Sankeshu, Dongfang Yuhong, and Jianlang Hardware [4] 3. Leading cyclical building materials companies with bottoming fundamentals, such as Huaxin Cement, Conch Cement, China Jushi, and Qibin Group [4] Market Performance - The Shanghai Composite Index rose by 1.13%, and the Shenzhen Composite Index rose by 1.82%. The building materials index increased by 0.63% [3][55] - Sub-sectors showed varied performance, with fiberglass manufacturing up by 2.08% and cement manufacturing down by 0.97% [3][55]

Investment Rating - The industry rating is "Outperform the Market" [7] Core Viewpoints - The report indicates that the real estate market is gradually stabilizing, supported by policies aimed at boosting housing demand and improving purchasing power. This is expected to enhance the overall market sentiment and reduce credit risks for companies in the construction materials sector [5][12] - Short-term pressures for growth have led to renewed emphasis on stabilizing the real estate sector, while medium to long-term monetary and fiscal policy adjustments are anticipated to further support the market [12] - The report highlights that the construction materials sector has limited room for further deterioration compared to the end of 2022, with expectations for both fundamental recovery and valuation improvement [5] Summary by Sections 1. Weekly Insights - As of Q1 2025, the balance of real estate loans in RMB reached 53.54 trillion, with a year-on-year increase of 0.04%. Personal housing loans decreased by 0.8% year-on-year, but the growth rate improved by 0.5 percentage points compared to the end of the previous year [12] - Various local governments have introduced measures to stimulate housing consumption and support the real estate market, including tax adjustments and incentives for home purchases [12] 2. Weekly High-Frequency Data - The average price of bulk P.O 42.5 cement nationwide is 375 RMB/ton, down 0.6% week-on-week and down 5.7% year-on-year [3][13] - The factory price of glass (5.00mm) is 1230 RMB/ton, down 0.3% week-on-week and down 25.9% year-on-year [3][22] 3. Sector Review - The construction materials index increased by 0.18% this week, while the overall market indices saw slight declines [4][54] - Among sub-sectors, other building materials and cement products showed positive performance, while cement manufacturing and glass manufacturing experienced slight declines [4][54] 4. Investment Recommendations - The report suggests focusing on three main investment lines: high-quality companies benefiting from inventory upgrades, undervalued stocks with long-term potential, and leading cyclical building material companies showing signs of bottoming out [5]

Core Viewpoint - The article suggests that first-tier cities like Shanghai and Shenzhen are likely to stabilize first, while second-tier cities such as Chengdu, Hohhot, and Nanchang have more mature conditions for stabilization [1][3]. Group 1: First-tier Cities - Shanghai and Shenzhen are expected to lead in stabilization, with their new housing inventory turnover periods being significantly better than those of Beijing and Guangzhou, at 9.7 and 13.1 months respectively [4]. - The second-hand housing transaction shares for Beijing, Shanghai, Guangzhou, and Shenzhen are close to stable levels, with increases of 4.2, 6.4, 0.1, and 7.6 percentage points compared to the entire year of 2024 [4]. - The land auction market in Shanghai has shown strong performance, with land revenue of 61.45 billion yuan, a 90% increase year-on-year, and an average premium rate of 23.3%, up by 15.9 percentage points [5]. Group 2: Second-tier Cities - Chengdu, Hohhot, and Nanchang are identified as having more mature conditions for stabilization, with Chengdu's new housing inventory turnover period at 12.8 months, indicating a reasonable range [9][12]. - Hohhot has a rental yield of 2.8% and a minimal decline in rental prices, with land revenue of 3.18 billion yuan this year, a significant increase from 0.35 billion yuan last year [14]. - Nanchang's new housing inventory turnover period is 11.9 months, and its land revenue has increased by 154.5% year-on-year, indicating a positive trend in the real estate market [15].

Core Viewpoint - The real estate market in April showed signs of insufficient recovery, with a notable divergence between the performance of second-hand and new homes, indicating a potential stabilization in first and second-tier cities [1][3]. Group 1: Market Performance - In April, new home sales weakened both year-on-year and month-on-month, with the transaction area of commercial housing declining by 2.9% year-on-year, a drop of 1.4 percentage points compared to March, and a month-on-month decline exceeding 40% [3]. - The average sales price of new homes fell by 4.3% year-on-year, with a decline of 3.5 percentage points compared to March [3]. - In contrast, the second-hand housing market showed resilience, with a year-on-year increase of 20.8% in transaction area across 18 sample cities, despite a month-on-month decrease of 7.3% [3]. Group 2: City-Level Analysis - Among 30 major cities, the transaction area of commercial housing decreased by 12.1% year-on-year in April, with first-tier cities demonstrating resilience due to the support of quality housing supply, leading to a recovery in sales growth to over 20% year-on-year in May (up to the 25th) [3]. - Second-tier and lower-tier cities continue to face pressure, with no improvement in year-on-year growth rates for new home transactions [3]. Group 3: Market Dynamics - The rental yield in April reached 2.3%, with the spread over the 30-year treasury yield increasing to 42 basis points since the beginning of the year, indicating potential for long-term stability in the real estate market when rental yields exceed 2.5% [3]. - The proportion of second-hand home transactions increased to 59.0% in the first four months of the year, up 6.7 percentage points from the entire year of 2024, suggesting a shift from a growth phase to a maturity phase in the market [3]. Group 4: Inventory and Future Outlook - Narrow inventory remains high, but broad inventory has returned to 2010 levels, with de-stocking pressure mainly on existing homes [4]. - The implementation of new housing regulations and adjustments in land acquisition strategies by real estate companies may alleviate the pressure between new supply and existing home inventory [4]. - Cities like Shanghai and Shenzhen in the first tier, and Chengdu, Hohhot, and Nanchang in the second tier, are seen as having conditions favorable for early stabilization in their real estate markets [4].

Core Viewpoint - The national real estate market is still at the bottom left side, but the conditions for stabilization in first-tier and core second-tier cities are gradually maturing [1][33]. Group 1: Market Performance - The real estate market is experiencing increased differentiation, with new home sales declining by 2.9% year-on-year in April, while second-hand home sales in 18 sample cities increased by 20.8% year-on-year [3][10]. - In the first quarter, the transaction area of new homes in 30 major cities saw a year-on-year growth of 2.5%, with first-tier cities achieving an impressive 18.4% growth [3][10]. - The land auction market shows mixed performance, with some cities like Hangzhou and Shanghai seeing high premium transactions, while most cities experience relatively cold land auctions [4]. Group 2: Indicators of Market Stabilization - The rental yield in April 2025 was 2.31%, with the spread over the 30-year government bond yield rising from -58 basis points at the beginning of 2024 to 42 basis points, indicating improved attractiveness of real estate as an investment [11][14]. - The proportion of second-hand home transactions in 18 sample cities reached 59.0% in the first four months of 2025, up 7.9 percentage points year-on-year, suggesting a shift towards a more mature market [21][25]. - The narrow inventory of completed but unsold residential properties stood at 420 million square meters in April, with a de-stocking cycle of 21.6 months, indicating ongoing inventory pressure [27][31]. Group 3: City-Level Analysis - First-tier cities are showing signs of stabilization, with the de-stocking cycle for residential properties around 14.7 months, while second-tier cities are experiencing a longer cycle of 19.5 months [31]. - The second-hand home transaction proportion in first-tier cities was 63.7%, indicating a more mature market compared to second and third-tier cities [21][25]. - The new housing projects launched under the new regulations are expected to enhance the practicality, safety, and comfort of residential properties, potentially leading to a significant differentiation in new home sales [31].

Core Viewpoint - The real estate market in China has shown signs of stabilization and recovery since the first quarter of 2025, driven by supportive policies and improved market confidence [1] Group 1: Market Trends - The report indicates that various indicators of the real estate market began to improve and stabilize in the fourth quarter of 2024 due to a series of policy supports [1] - Since the first quarter of 2025, market transactions have gradually stopped declining and started to stabilize [1] Group 2: Land Acquisition - In 2024, real estate companies exhibited a high degree of similarity in land acquisition choices, primarily focusing on core plots in first and second-tier cities [1] - Leading real estate firms are leveraging their financial advantages to strategically increase their reserves of high-quality land resources in major cities [1] - Competition for key plots is intense, while many small and medium-sized firms are constrained by liquidity pressures, leading to a contraction in their investment scope [1] Group 3: Strategic Opportunities - Companies are encouraged to actively seize structural opportunities by exploring the diverse structural demands of different cities and homebuyer groups [1] - Enhancing the ability to realize value from inventory is crucial for driving sales growth and improving cash flow [1]

过半小区房价环比上涨，高频交易小区数量创新高，议价空间创新低 ◎ 文 / 马千里 在本周的国新办经济数据发布会上，对于当下房地产市场的走势，国民经济综合统计司司长付凌晖表示， 4月份房地产市场交易和价格基本稳定，部分一、二线城市交易活跃度有所提升。70个大中城市中，一、 二、三线二手住宅销售价格同比收窄0.9、0.5和0.4个百分点。CRIC监测重点城市4月份平均去化率37%， 较上年同期高出13个百分点。 与我们上月判断一致，在3月份短暂调整之后，4月重点城市房价上涨的小区占比达到51.9%，再度超过半 数。与信心企稳同步，议价空间进一步收窄，高端小区房价延续领涨。随着挂牌价与成交价差距的持续收 缩，二手房正在释放出更多企稳新信号： 过半小区房价环比上行 高频交易小区数量再创新高 01 为探析二手房成交价格的动向，研究中心以北京、上海等11个典型城市的二手房小区为样本，为避免单套 异常成交影响较大，每个月样本小区的选取标准，均为近2个月交易量不小于5套。 从统计结果来看， 4月有51.9%的小区成交价格环比上升，较上月增加3个百分点，高频交易小区数量环比 增长62%，创下年内新高，更多小区迎来成交"解冻" ...

Investment Rating - The industry rating is "Outperform the Market" [8][69] Core Viewpoints - The recent reduction in personal housing provident fund loan rates and the expected incremental policies are anticipated to boost home buying willingness and ability, thereby stabilizing the real estate market fundamentals [3][6] - The central bank's actions, including a 0.5 percentage point reserve requirement ratio cut and a 0.1 percentage point policy interest rate reduction, are expected to provide long-term liquidity of approximately 1 trillion yuan to the market [3][6] - The report highlights that the real estate sector is gradually entering a bottoming phase after three consecutive years of decline in commodity housing sales area, with increasing sensitivity to policy easing [3][6] Summary by Sections Weekly Insights - On May 7, the People's Bank of China announced a 0.5 percentage point reserve requirement ratio cut and a 0.1 percentage point policy interest rate reduction, along with a 0.25 percentage point decrease in personal housing provident fund loan rates [3][13] - The report outlines various local government initiatives aimed at supporting housing purchases, including increased subsidies for green buildings and multi-child families [3][13] High-Frequency Data - As of May 9, 2025, the national average price of bulk P.O 42.5 cement is 390.0 yuan/ton, showing a 1.3% decrease from the previous week but an 11.5% increase year-on-year [4][14] - The national average price of glass (5.00mm) is 1271.4 yuan/ton, reflecting a 0.3% decrease from the previous week and a 24.7% decrease year-on-year [4][22] Sector Review - The Shanghai Composite Index rose by 1.92%, while the Shenzhen Composite Index increased by 2.88%. The building materials sector index rose by 2.55% [5][55] - Among sub-sectors, refractory materials saw the highest increase at 7.96%, followed by other building materials at 4.44% and cement products at 4.42% [5][55] Investment Recommendations - The report suggests focusing on three main investment lines: high-quality companies benefiting from stock renovations, undervalued stocks with long-term alpha attributes, and leading cyclical building material companies showing signs of bottoming [6][58]

Group 1 - The central viewpoint of the article highlights the significant impact of recent financial policies on the Shenzhen real estate market, particularly the reduction of housing loan rates, which has led to historically low property acquisition costs [1][3][55] - The policy changes have resulted in a surge of interest in the Shenzhen housing market, with a notable example being the successful launch of the Pengchen Yunzhu project, which achieved rapid sales and high revenue during the May Day holiday [8][12][55] - The project has demonstrated strong market performance, with previous launches also seeing high demand, indicating a robust recovery in the Shenzhen real estate sector [12][14][55] Group 2 - The Pengchen Yunzhu project stands out due to its unique design and high-quality amenities, which have attracted a significant number of buyers, contributing to its success in the competitive market [17][33][55] - The project features innovative space utilization and high-end finishes, setting a new standard for residential properties in Shenzhen, which has traditionally struggled with space efficiency [33][36][55] - The combination of favorable financial policies and the product advantages of Pengchen Yunzhu creates a rare investment opportunity in a core urban area, with expectations for continued demand as new phases are launched [55][56]