Investment Rating - The report maintains a "Positive" investment rating for the real estate industry [12]. Core Insights - The financial attributes of the real estate sector are emphasized, highlighting its importance in the national economy and household wealth, with a focus on expectation management as a key factor in stabilizing the housing market [3][9]. - The report suggests that improving and stabilizing market expectations is strategically significant, with a gradual increase in the probability of relaxed industrial policies [5]. - The current phase of rapid decline in industry volume and price may have passed, with structural highlights in core areas and quality properties [5]. - The report indicates that the current stock position is not significantly premium from the bottom, providing room for a rebound in market valuations [5]. Market Performance - The Yangtze River Real Estate Index decreased by 0.08% this week, with an excess return of +0.50% relative to the CSI 300, ranking 13th out of 32 sectors [6][15]. - The performance of the sector was generally average this week, with only a few development and property management stocks rising, while rental properties showed mixed results [6]. Policy Updates - The personal housing sales value-added tax rate has been reduced from 5% to 3% for properties sold within two years [7]. - The Ministry of Housing and Urban-Rural Development has issued opinions to enhance housing quality, aiming for significant progress by 2030 in standards, design, materials, construction, and operation levels [7]. - Local policies in Shenzhen emphasize promoting high-quality real estate development, focusing on affordable housing and improved commodity housing [7][16]. Sales Data - The rolling year-on-year decline in new and second-hand housing transactions in sample cities has narrowed, with new housing transaction area down by 39.2% year-on-year and second-hand housing down by 26.6% [8]. - Cumulatively, new housing transaction area in 37 cities is down 65.5% year-to-date, while second-hand housing is down 83.6% [8]. Key Issues - The report identifies that the key to improving market expectations lies in continuous industrial upgrades and the enhancement of distribution and security systems, indicating a need for a long-term systemic approach rather than just focusing on total demand [3][9]. - The report highlights that the direct boost to housing price expectations from policy measures is relatively short-term, with structural fiscal or monetary tools being crucial for sustained improvement [3][9].