Core Viewpoint - The reasonable valuation level is the foundation for the implementation of real estate policies, and when the benefits of new policies equal or exceed their costs, the space for real estate policies is expected to open up [2]. Policy Context - The cost of implementing real estate policies is high and their effectiveness is weak when housing prices have not returned to reasonable levels. This is a key reason for the "absence" of real estate policies in 2025. As the real estate market returns to valuation bottoms in 2026, many cities' rental yields have reached reasonable levels, indicating that the benefits of new policies will match or exceed their costs, creating a fertile ground for policy initiatives this year [4]. - Recent articles emphasize the importance of managing expectations in the real estate market, highlighting that the health of the real estate market is crucial for economic and social development [5][6]. Policy Initiatives - Expected policies that may effectively boost the real estate market include: 1. **Urban Renewal**: The government is focusing on urban renewal as a key strategy, with significant investments planned in cities like Beijing, Chongqing, and Wuhan, indicating a shift towards revitalizing existing urban areas rather than expanding outward [9][10]. 2. **Acquisition Policies**: The feasibility of acquiring older properties is increasing as rental yields in core areas return to reasonable levels, making it more viable to implement acquisition policies [10][11]. 3. **Interest Subsidies**: Various cities are introducing interest subsidies for homebuyers to facilitate the transition from old to new properties, aiming to stimulate market activity [11][12]. 4. **Home Purchase Subsidies**: Cities are rolling out differentiated home purchase subsidies to encourage buying new homes, with some areas offering substantial cash incentives [12]. 5. **Increased Housing Fund Loan Limits**: Raising the limits on housing fund loans is expected to alleviate the financial burden on homebuyers, promoting demand in the market [12]. Market Outlook - As housing prices continue to adjust, it is anticipated that more cities will meet the criteria of stable total demand and reasonable valuations by 2026, further opening up the space for real estate policies [8].