Core Insights - A recently auctioned foreclosed property in the popular Bojingting community of Ningbo's Eastern New Town has garnered significant attention due to its unique location and high demand [1][3] - The property, with a total area of 134.28 square meters, was appraised at 6.3 million yuan, with a starting bid set at 4.41 million yuan [1][3] Auction Details - The auction attracted nearly 30,000 online viewers and 8 registered bidders, leading to 49 rounds of bidding within the first 9 minutes [3] - The final transaction price was 6.016 million yuan, approximately 44,800 yuan per square meter, reflecting a 36.4% premium over the starting price [3][5] Market Comparison - Despite the high premium, the final price is still lower compared to previous years, with a similar property selling for 7.525 million yuan in August 2023 and another larger unit fetching 24.495 million yuan earlier this year [5] - The competitive nature of foreclosed properties in popular neighborhoods like Bojingting indicates sustained market interest and investor confidence in Ningbo's Eastern New Town real estate sector [5]

Investment Rating - The report indicates a cautious outlook on the Chinese real estate market, with expectations of declining new housing supply in July and a mixed performance across different city tiers [4][5][9]. Core Insights - In July, new housing supply is expected to decrease by 32% month-on-month and 29% year-on-year, reaching a low point for the year, with significant reductions in supply from major cities like Shanghai, Guangzhou, and Shenzhen [5][9]. - The supply structure is shifting towards improvement-oriented products, with 40% of new supply targeting first-time buyers, 45% for upgrades, and 15% for high-end products [11][12]. - The average absorption rate for projects in 28 key cities is projected to be 29%, reflecting a 15 percentage point decrease month-on-month but a slight increase year-on-year [16][18]. Summary by Sections Supply Overview - In July, the total new housing supply across 28 key cities is estimated at 5.13 million square meters, marking a 32% decrease from the previous month and a 29% decline year-on-year [5][11]. - First-tier cities, particularly Beijing, are expected to maintain higher supply levels, while other cities like Shanghai and Shenzhen are experiencing significant reductions [7][9]. City Tier Analysis - Over 80% of second-tier cities are expected to see a decline in supply, with notable drops in cities like Qingdao and Changchun [9][10]. - Third and fourth-tier cities continue to struggle, with a 10% month-on-month decrease and a 37% year-on-year decline in supply [9][10]. Supply Structure - The supply structure is increasingly focused on improvement needs, with nearly 70% of cities prioritizing main urban areas for new housing projects [11][13]. - Cities like Kunming and Wuxi have a high proportion of first-time buyer products, while cities like Beijing and Chengdu are focusing more on improvement-oriented offerings [12][13]. Market Outlook - The report anticipates a continued low level of new home transactions, with potential for a slight recovery due to low year-on-year comparisons [16]. - The differentiation between cities and projects is expected to intensify, with core areas maintaining high demand while peripheral projects face challenges [16][17].

Investment Rating - The report maintains an "Overweight" rating for the real estate development and real estate services sectors [5]. Core Insights - The market heat is gradually recovering, influenced by the Spring Festival and the 924 policy, with a notable year-on-year sales increase of 6.7% in February, despite a month-on-month decrease of 5.4% [1]. - The sales thresholds for the top 10 real estate companies have significantly increased, indicating a more competitive landscape [2]. - Central state-owned enterprises continue to outperform private firms in terms of sales growth, with a year-on-year increase of 9.2% for central enterprises compared to a decline of 23.5% for private enterprises [3]. - Signs of stabilization in the housing market are emerging, particularly in key cities where resource reserves are abundant, suggesting potential for valuation recovery for companies in these areas [4]. Summary by Sections Market Performance - In February, the sales amount for the top 100 real estate companies decreased by 5.4% month-on-month but increased by 6.7% year-on-year, with a cumulative sales amount for January-February showing a slight decline of 1.4% year-on-year [1]. - The KMI index for new and second-hand housing transactions in 50 cities indicates a recovery, with week-on-week increases of 6.7% and 12.6%, respectively [1]. Company Performance - The sales thresholds for the top 10, 20, 30, 50, and 100 real estate companies reached 128 billion, 51 billion, 34 billion, 16 billion, and 6 billion respectively, with the top 10 showing a year-on-year increase of 4.8% [2]. - Among the top 50 companies, 19 reported year-on-year sales growth, with six companies achieving over 50% growth [3]. Future Outlook - The report highlights a positive outlook for companies with substantial resource reserves in key cities, recommending specific companies such as Chengdu Investment Holdings and China Merchants Shekou [4]. - The report emphasizes the potential for valuation recovery and stable cash flow for property management companies as the market stabilizes [4].