Core Viewpoint - The real estate market in China shows signs of stabilization in February, with first-tier cities experiencing a continuous increase in new home prices for three consecutive months, while second-tier cities remain flat [1][4][6]. Price Trends - In February, new home prices in first-tier cities rose by 0.1% month-on-month, with Beijing, Shanghai, and Shenzhen increasing by 0.1%, 0.2%, and 0.4% respectively, while Guangzhou saw a decrease of 0.2% [4]. - Second-tier cities' new home prices remained unchanged after a 0.1% increase in the previous month, while third-tier cities experienced a 0.3% decline [4]. - The number of cities with rising new home prices decreased to 18, with Nanjing leading at 0.5% increase for three consecutive months [4]. Year-on-Year Comparisons - Year-on-year, first-tier cities saw a 3.0% decline in new home prices, narrowing by 0.4 percentage points compared to the previous month [5]. - Second-tier cities' new home prices fell by 4.7%, with a reduction in the decline rate of 0.3 percentage points [5]. - Second-hand home prices in first-tier cities decreased by 4.9% year-on-year, with a narrowing decline of 0.7 percentage points [5]. Market Dynamics - The real estate market is experiencing a seasonal slowdown due to the Spring Festival, with a 22.6% drop in new home transactions across 30 major cities [8]. - Analysts suggest that the market is showing signs of recovery, particularly in first-tier and some hot second-tier cities, due to strong economic development and population attraction [8][9]. - The upcoming introduction of new, high-quality housing projects is expected to improve supply-demand dynamics and support new home prices [9].

Investment Rating - The report indicates a narrowing decline in sales for the top 100 real estate companies, with a year-on-year decrease of 5.9% for January-February 2025, which is a significant improvement of 10.6 percentage points compared to January [24][27]. Core Insights - The total sales for the top 100 real estate companies reached CNY 447.99 billion in January-February 2025, with February showing a year-on-year growth of 17.3% [27]. - The report highlights that 12 companies exceeded CNY 10 billion in sales, a decrease of 2 compared to the same period last year [27][35]. - Marketing initiatives such as housing fairs and promotional events have been launched in various regions to stimulate market activity [25][36]. Summary by Sections Sales Performance - The top 100 real estate companies' sales performance showed a total of CNY 4,479.9 billion, with a year-on-year decline of 5.9% [27]. - In February alone, the sales increased by 17.3% compared to the previous year [27]. - The average sales for the top 10 companies was CNY 21.27 billion, a slight increase of 0.3% year-on-year [30]. Market Dynamics - The number of companies with sales exceeding CNY 10 billion decreased to 12, while the number of companies in the CNY 5-10 billion range remained stable at 8 [35]. - The report notes that the average sales for companies in the CNY 30-50 billion range decreased by 16.5% year-on-year [30]. Marketing Strategies - Various cities have organized housing fairs and promotional events to boost market activity, focusing on high-quality housing options [25][36]. - The report emphasizes the importance of these marketing strategies in sustaining healthy market development [36].