Market Overview - The real estate market experienced a "red May" with noticeable differentiation in performance across cities, particularly in hotspots like Shanghai, Beijing, and Guangzhou [1][2] - In May, the new housing transaction area in 30 key cities was 10.58 million square meters, a month-on-month decrease of 2% and a year-on-year decrease of 9% [1][4] - The sales revenue of the top 100 real estate companies fell by 17.3% year-on-year in May, with a slight increase in the rate of decline compared to April [1][7] City-Specific Performance - Shanghai saw a significant increase in new housing transactions, with 620,000 square meters sold in May, representing a 20% month-on-month increase and a 24% year-on-year increase [2] - Guangzhou's new housing sales reached 6,572 units in May, marking a 32% month-on-month increase and a 26% year-on-year increase [2] - In Beijing, new housing transactions totaled 3,917 units in May, reflecting a 14% month-on-month increase and a 38% year-on-year increase [2] Differentiation in Sales - The market showed clear differentiation, with some core areas in Shenzhen achieving a project sell-through rate exceeding 80%, while non-core areas struggled with rates below 50% [3][4] - The average sell-through rate for new projects in 30 key cities was 39% in May, up 1% month-on-month and 12% year-on-year, indicating a stable market trend [4] Company Performance - Major real estate companies are under pressure, with many launching new products to boost sales amid declining overall performance [1][8] - Poly Developments achieved a sales revenue of 28.512 billion yuan in May, a 15.8% month-on-month increase but a 19.3% year-on-year decrease [7] - Greentown China reported a sales revenue of 25.5 billion yuan in May, with a 37.1% month-on-month increase and a 9.4% year-on-year increase [7] Strategic Adjustments - Companies are focusing on high-quality products that meet the "good housing" standards, with a shift towards fourth-generation residential projects [6][8] - Developers are utilizing strategies such as significant discounts and enhanced marketing efforts to drive sales in weaker second and third-tier cities [6][8] - The supply structure in June is expected to focus more on improvement-type housing, with a balanced approach to meeting both demand and performance targets [9]

Core Viewpoint - The real estate market is gradually stabilizing after a period of adjustment, with notable performance in major cities during May, although significant market differentiation remains evident [1][3][9]. Market Performance - In May, the new housing transaction area in 30 key cities was 10.58 million square meters, a month-on-month decrease of 2% and a year-on-year decrease of 9% [1][9]. - Major cities like Shanghai, Beijing, and Guangzhou showed positive trends, with Shanghai's new housing transactions increasing by 20% month-on-month and 24% year-on-year [3][4]. - Guangzhou's new housing transactions rose by 32% month-on-month and 26% year-on-year, while Beijing saw a 14% month-on-month and 38% year-on-year increase [4][3]. Sales Performance of Leading Companies - The sales revenue of the top 100 real estate companies in May decreased by 17.3% year-on-year, with a slight increase in the decline rate compared to April [10][12]. - Poly Developments achieved a sales revenue of 28.51 billion yuan in May, a month-on-month increase of 15.8% but a year-on-year decrease of 19.3% [10]. - Greentown China reported a sales revenue of 25.5 billion yuan in May, with a year-on-year increase of 9.4% [10]. Market Differentiation - The market is characterized by significant differentiation, with some cities experiencing a decline in new housing transaction volumes [7][8]. - In Chengdu, new housing supply and transaction volumes both saw declines, with new supply down by 38.84% year-on-year [8]. - In Shenzhen, core area projects had a high sales rate exceeding 80%, while non-core area projects struggled with rates below 50% [8]. Product Strategy and Market Response - Companies are focusing on launching "good housing" new regulation products to improve sales performance, achieving high sales rates [1][9]. - Developers are adapting their strategies by enhancing existing projects and improving service quality to compete with new regulation products [13]. - The market is expected to continue its weak recovery trend, with a focus on improving product quality and marketing efforts as companies approach mid-year performance targets [14].