Group 1 - Multiple regions have introduced housing support policies to stimulate the real estate market, particularly during the traditional peak season of "Golden September and Silver October" [1][5] - Henan Province has launched 12 measures to support housing consumption, including increasing home purchase subsidies and expanding the use of housing provident funds [2][3] - In Yuhang, a new policy provides a one-time subsidy of 40,000 yuan for families purchasing newly built residential properties, along with a 50% subsidy on the actual deed tax paid for non-residential properties [4] Group 2 - The policies aim to lower home purchase costs and meet both rigid and diverse housing improvement demands through government subsidies, corporate discounts, and financial support [2][3] - Financial institutions are encouraged to innovate housing credit products to better meet the diverse needs of young homebuyers [3] - Experts predict that core first- and second-tier cities will continue to experience high market volatility, while cities like Wuhan, Nanjing, Hefei, and Zhengzhou may show signs of weak recovery as homebuyer confidence gradually improves [5]

Core Viewpoint - Beijing's recent policy to relax home purchase restrictions outside the Fifth Ring Road has led to increased activity in the new housing market, particularly for improvement-type properties, while the second-hand housing market has not yet shown significant changes [1][7]. New Housing Market Response - Following the policy announcement, the new housing market outside the Fifth Ring Road has seen a rise in interest, with developers more willing to launch new projects [1][4]. - The first weekend after the policy change saw a notable increase in visitor numbers and sales at new developments, such as the Huayu Jingyun project, which sold over 50 units at prices ranging from 58,000 to 61,000 yuan per square meter [2][4]. - According to data from the China Index Academy, over 80% of new residential sales in Beijing from January to July occurred outside the Fifth Ring Road, indicating this area as a key market segment [3]. Market Dynamics and Trends - The new policy is expected to stimulate demand for improvement-type housing, as families gain eligibility to purchase homes within the Fifth Ring Road due to the relaxed restrictions [3][10]. - The overall sentiment in the new housing market is positive, with analysts predicting a sales peak for properties outside the Fifth Ring Road, encouraging developers to accelerate project launches [3][10]. Second-Hand Housing Market Response - The second-hand housing market has shown a more subdued response to the new policy, with no significant changes in transaction volumes observed immediately after the announcement [7][9]. - Despite the lack of immediate impact, there is an expectation that the second-hand market will eventually benefit from increased activity as more properties become available for sale [9][10]. - Data indicates that while the second-hand market remains stable, there has been a slight uptick in inquiries and viewings, suggesting potential future growth [9][10].

Core Viewpoint - Beijing has optimized its real estate purchase policies, allowing residents to buy unlimited properties outside the Fifth Ring Road, aiming to reduce housing inventory and stabilize market expectations [1][2]. Policy Changes - The new policy allows Beijing residents and non-residents who have paid social insurance or individual income tax for at least two years to purchase unlimited properties outside the Fifth Ring Road, compared to previous restrictions of two properties for residents and one for non-residents [1][2]. - The aim is to activate potential demand for multiple properties, such as for elder care, children's education, and improved living conditions due to job relocations [2]. Market Conditions - As of June, the new housing price index in Beijing fell by 0.3% month-on-month and 4.1% year-on-year, while the second-hand housing price index dropped by 1% [2]. - New housing inventory stood at 9.818 million square meters, a year-on-year decrease of 8.2%, with a de-stocking cycle of 15 months, predominantly located outside the Fifth Ring Road [2]. Public Fund Policy Adjustments - The new policy broadens the criteria for first-time homebuyers using public funds, allowing those with one cleared loan to qualify as first-time buyers, and increases the loan limit for second homes from 600,000 to 1 million yuan [3][4]. - The loan coefficient for public fund contributions has increased, allowing borrowers to access more funds with shorter contribution periods [4]. Implications for Housing Demand - The adjustments aim to lower the barriers and costs of home purchases, thereby stimulating potential demand, especially among first-time buyers and families looking to upgrade their living conditions [4][5]. - The policy reflects a shift towards more targeted measures to activate the housing market's internal dynamics, focusing on supporting green building development and families with multiple children [5].

Investment Rating - The report maintains a "Positive" investment rating for the real estate industry in China [4] Core Viewpoints - The total land acquisition amount of the top 100 real estate companies in January-February 2025 achieved double-digit growth, indicating a recovery in market sentiment [37] - New home sales in 44 major cities increased by 42.54% compared to the previous week, while second-hand home sales rose by 23.19%, suggesting a positive trend in the housing market [14] - The average premium rate for land transactions in 36 major cities decreased to 19.8%, reflecting a more cautious bidding environment [29] Summary by Sections Market Performance - The real estate sector index outperformed both the CSI 300 index and the ChiNext index, with a relative return of 4.6% compared to the CSI 300 index, which saw a weekly decline of 2.2% [7][10] - In the ninth week, the real estate index closed at 2327.29, with a weekly increase of 2.4% [10][13] Policy Developments - National policies include the expansion of support for urban village renovation and adjustments to housing loan policies in various cities, such as lowering the down payment ratio for second homes in Tianjin to 20% [12][16] - Local policies in Beijing and other cities are aimed at stimulating the housing market, including the introduction of new residential land plots [12][16] Sales and Inventory Data - In the ninth week, new home sales in 44 major cities reached 23,000 units, while second-hand home sales totaled 22,000 units, indicating a significant increase in market activity [14][18] - The inventory of new homes in 18 major cities increased to 870,000 units, with a sales-to-inventory ratio of 21.1 months, reflecting a slight increase in inventory levels [18] Company Announcements - Key companies such as Financial Street and Vanke A have made announcements regarding debt financing and related transactions, indicating ongoing financial activities within the sector [34][36] - The top 100 real estate companies reported a total sales amount of 198.1 billion yuan in February, with a year-on-year decline of 0.4% [37] Investment Recommendations - The report recommends buying shares of Poly Developments and China Merchants Shekou, while suggesting to pay attention to companies like China Resources Land and Yuexiu Property [37]