Core Viewpoint - The real estate market is gradually stabilizing, with new home prices in major cities showing signs of recovery, although some cities continue to experience price declines [1][3]. Group 1: Market Trends - In May, new home prices in Hangzhou increased by 0.8% month-on-month, leading the 70 cities surveyed, while Shanghai followed with a 0.7% increase [3][10]. - The average price of new homes in Shanghai reached a historical high of 90,691 yuan per square meter in May, driven by the introduction of high-end properties [11]. - The overall sales area of new homes in May was 70.53 million square meters, with a sales value of 70.56 billion yuan, reflecting a month-on-month increase of 10% and 13% respectively [4]. Group 2: Regional Analysis - In Hangzhou, the average price of new homes has surpassed 10,000 yuan per square meter, indicating a shift towards higher quality housing [3]. - The real estate market in South China, particularly in Nanning, is primarily driven by "just demand," with a significant portion of sales focused on affordable and improvement-type housing [14][15]. - The market in Nanning has seen a continuous increase in new home prices for six months, with a month-on-month increase of 0.4% in May [13]. Group 3: Policy and Future Outlook - The State Council has emphasized the need for policy optimization to stabilize expectations and activate demand in the real estate market [4]. - Analysts suggest that the current market differentiation is a norm, with core cities showing resilience while lower-tier cities face ongoing price declines [3][9]. - Future developments in Hangzhou and Shanghai are expected to push new home prices higher, with several high-end projects set to enter the market [8][12].