Core Insights - The supply of foreclosed properties in May 2025 decreased by 18% month-on-month, while transactions surged by 276%, reaching a monthly high for the year [1][9] - The recovery in market confidence is attributed to ongoing domestic policies aimed at stabilizing the real estate market and a temporary easing of tariff agreements [1] - High-net-worth individuals and investment institutions are expected to show increased interest in the foreclosed property market, particularly in economically outward-oriented cities like Shanghai, Shenzhen, Hangzhou, Ningbo, and Xiamen [1] Supply and Demand Analysis - In May 2025, the new supply of foreclosed properties was 24,900 units, down from 30,400 units in April, marking a 18% decrease and a 29% decrease year-on-year [2] - The total starting price for these properties was 23.2 billion yuan, a 30% decline from the previous month [2] - Major cities with significant new listings included Chongqing, Chengdu, Wuhu, and Zhengzhou, with Chongqing leading at 1,195 units, maintaining its position for six consecutive months [5] Transaction Volume and Market Activity - The transaction volume for foreclosed properties in May 2025 reached 4,679 units, a 276% increase month-on-month, although it was down 17% year-on-year [9] - The auction heat increased, with 69% of properties sold at a premium, up 3 percentage points from the previous month [9] - Notably, 7.7% of properties had bidding counts exceeding 100, indicating heightened competition [9][18] City-Specific Insights - In first-tier cities, the number of new foreclosures was below 300, with Guangzhou leading at 233 units, a 37% decrease month-on-month [8] - Beijing had the highest total starting price for new listings at 2.56 billion yuan, driven by significant properties like the China International Technology Fair Center [8][12] - The transaction rate for foreclosed properties in May was 19%, an increase of 3 percentage points from the previous month, with cities like Ningbo, Shanghai, and Hangzhou exceeding 50% [15] Market Outlook - The foreclosed property market is expected to benefit from ongoing stabilization efforts in the real estate sector and rapid urban renewal initiatives [19] - However, a seasonal peak in first-hand property transactions in June may lead to a diversion of demand, potentially affecting the momentum of foreclosed property transactions [19]