Summary of the Real Estate Market Conference Call Industry Overview - The conference call focuses on the real estate market in China, particularly the performance of the top 100 real estate companies in April 2025 and the implications of market trends for the upcoming months [1][2][3]. Key Points and Arguments Market Performance - The real estate market continued to show signs of bottoming out during the May Day holiday, with promotional activities by companies failing to address core issues, making a market turnaround unlikely in the short term [1][3]. - In April 2025, the supply of real estate decreased by 25% year-on-year, marking the lowest level in recent years. First-tier cities saw a month-on-month increase in supply, while second and third-tier cities generally experienced declines [1][4]. - Transaction volumes in 30 major cities fell by 26% month-on-month in April, with first-tier cities performing poorly and most second and third-tier cities also declining, although a few cities showed growth [1][6]. Sales and Inventory - The sales of the top 100 real estate companies in April 2025 decreased by 10% month-on-month and 8.7% year-on-year, with leading companies experiencing a more significant decline of around 30% [2]. - New home absorption rates in first and second-tier cities generally declined, with notable drops in Beijing, Shanghai, and Shenzhen, while Chengdu and Changsha performed well [1][7][8]. Land Acquisition Trends - Land acquisition by real estate companies improved significantly in the first four months of 2025 compared to the same period in 2024, with a 41% increase in total land acquisition amount and a 3.2% increase in area [10]. - The investment structure is increasingly concentrated in core cities, leading to rising land prices. The top ten companies showed a significant increase in land acquisition intensity, with the ratio of land acquisition amount to sales amount rising to 45% [11][12]. Market Expectations - The expectation for a "small spring" in the real estate market in 2025 is tempered, with predictions that the market will not be as hot as in 2024. The core issues remain unresolved, and the market is still in a bottoming phase [5]. - The second-hand housing market also showed signs of cooling, with significant declines in transaction volumes in major cities like Shanghai and Guangzhou [9][15]. Future Outlook - The new housing market is expected to replicate the trends of 2024 over the next 3 to 6 months, remaining at a low level. The second-hand market may perform slightly better due to sufficient supply, with potential for growth through price reductions [19]. - The phenomenon of "land kings" is expected to cool down in the second half of the year, as companies are advised to wait for more favorable conditions before making high-priced land acquisitions [14]. Additional Important Insights - The core cities' second-hand housing prices have shown slight increases post-policy adjustments, but there is significant internal differentiation, and overall price increases are under pressure due to rising inventory levels [15][18]. - The impact of macroeconomic factors, such as the US-China trade war, is anticipated to influence the real estate market, necessitating ongoing observation and adjustments [16]. This summary encapsulates the critical insights from the conference call regarding the current state and future expectations of the real estate market in China, highlighting both challenges and opportunities within the sector.