Investment Rating - The industry investment rating is "Outperform" [1] Core Insights - The report indicates that real estate development investment in China decreased by 12.9% year-on-year in the first eight months of 2025, totaling 60,309 billion yuan. The sales area of newly built commercial housing also fell by 4.7% year-on-year, with sales amounting to 55,015 billion yuan, down 7.3% [1] - The report suggests that real estate companies capable of diversifying their operations are likely to achieve excess returns in the future [1] Industry Fundamentals Tracking New Housing Transactions and Inventory - In the last week, the new housing transaction area in 30 major cities was 1,208,700 square meters, with a cumulative area of 6,228,620 square meters for the year, reflecting a year-on-year decrease of 4.1%. The average transaction area over the past four weeks was 1,503,900 square meters, down 2.4% year-on-year and 1.1% month-on-month [2][11] - The average transaction area for first-tier cities was 421,800 square meters, down 9% year-on-year but up 2.7% month-on-month. For second-tier cities, it was 776,900 square meters, up 6.3% year-on-year and 1.1% month-on-month. Third-tier cities saw an average of 305,300 square meters, down 11.9% year-on-year and 10.7% month-on-month [11] Second-Hand Housing Transactions and Listings - In the last week, the transaction area for second-hand housing in 20 cities was 199,480 square meters, with a cumulative area of 7,969,590 square meters for the year, reflecting a year-on-year increase of 14.9% [3][16] - The listing index for second-hand housing was 12.02 as of September 1, 2025, up 1.3% month-on-month, while the listing price index was 152.14, down 0.35% month-on-month [20] Land Market Transactions - In the last week, 87 residential land plots were newly supplied in 100 major cities, with 37 plots successfully sold. The average floor price for residential land was 4,720 yuan per square meter, with a premium rate of 3.65%, down 1.37 percentage points month-on-month [23][24] Market Review - The A-share real estate index rose by 5.98% last week, outperforming the CSI 300 index, which increased by 1.38%, by 4.6 percentage points. The Hong Kong property service and management index rose by 7.53%, outperforming the Hang Seng Composite Index by 3.46 percentage points [4][28]