Summary of Key Points from the Conference Call Industry Overview: China Property Market - **Sales Performance**: The contract sales of the top 100 developers in China declined by 37% year-over-year (YoY) in November 2025, an improvement from a 41% decline in October 2025. The decline is attributed to a lower base effect from the policy impact in September 2024 [2][24][26]. - **Sequential Decline**: On a month-over-month (MoM) basis, contract sales fell by 12%, which is worse than the historical average decline of 4% MoM from 2020 to 2024 [2][7]. - **Two-Year Comparison**: Compared to November 2023, the sales dropped by 43%, worsening from a 38% decline in October 2025 [2][24]. - **Factors Influencing Sales**: The weak sales in November are attributed to: 1. Accelerated decline in secondary property prices in tier-1 cities over the past 2-3 months. 2. A significant reduction in new project launches, down 60% YoY across 12 cities [2][3]. Market Dynamics - **Secondary Listings**: Secondary listings across 50 cities increased by 10.1% YoY as of the end of November, up from 9.3% at the end of October. In tier-1 cities, the growth remained stable at 2.1% YoY [3][10]. - **Homeowner Behavior**: The rise in secondary listings is driven by: 1. Increased mortgage and operating loan default risks prompting banks to sell properties. 2. Homeowners selling properties ahead of loan maturities [3][10]. - **Real-Time Transactions**: Recent data indicates that secondary transaction units remain lower than levels seen in 2024 and 2023, reflecting subdued market sentiment [3][14]. Developer Performance - **Market Share**: The market share of state-owned enterprises (SOE) and private-owned enterprises (POE) developers stands at 53% and 32%, respectively [4][27]. - **Sales Performance by Developer Type**: Semi-SOE developers experienced a 40% YoY decline in contract sales, underperforming both SOE and POE developers, which saw declines of 36% YoY [4][27]. - **Top Performers**: Among SOE developers, Poly Property reported a 12% growth in contract sales, while C&D International and Yuexiu saw declines of 52% and 48% YoY, respectively [4][27]. Financial Metrics - **Top 100 Developers' Sales**: The combined gross contract sales value for the top 100 developers dropped by 37% YoY in November, compared to a 41% decline in October [6][24]. - **Individual Developer Performance**: Notable sales figures for November 2025 include: - CR Land: RMB 23.0 billion, -11% YoY - COLI: RMB 22.2 billion, -26% YoY - Poly Developments: RMB 18.1 billion, -25% YoY - Vanke: RMB 9.4 billion, -55% YoY [6][24]. Inventory Levels - **High Inventory**: As of October 2025, inventory levels in tier-1 cities remain high at 22 months, with the average inventory in 80 major cities reaching a historical high of 31.2 months [17][20]. Price Trends - **Secondary Housing Prices**: The average selling price (ASP) of secondary housing in six major cities has declined by 34% from its peak [21][22]. Risks and Opportunities - **Downside Risks**: Key risks include government policies restricting demand and mortgage lending, tight financing for developers, and lower-than-expected residential growth [35]. - **Upside Opportunities**: Potential for policy loosening that could boost residential property sales and investments, as well as large-scale asset disposals by developers to ease liquidity pressures [35].

Core Insights - The U.S. luxury housing market is exhibiting two contrasting trends, with a national entry point for luxury homes decreasing by 2.2% year-over-year to $1.22 million, while certain metropolitan areas are experiencing rising prices and faster sales, indicating strong buyer competition [1][3][5] National Luxury Market Overview - The national luxury benchmark, defined by the 90th percentile of listing prices, has decreased to $1.22 million, reflecting a 2.2% decline from the previous year [3][12] - The ultra-luxury segment (99th percentile) has shown signs of stabilization, increasing by 1.0% month-over-month to $5.41 million, although it remains 3.3% lower than last year [3][12] High-Velocity Markets - North Port-Bradenton-Sarasota, Florida, leads the nation with a nearly 20% year-over-year increase in its luxury entry point to $1.67 million, indicating strong demand from high-net-worth buyers [5][7] - Other competitive markets include Heber, Utah (8.4% increase), Boise City, Idaho (3.1% increase), and Minneapolis, Minnesota (2.7% increase), all showing faster sales alongside rising prices [5][8] Price Correction Markets - Markets such as Bridgeport, Connecticut, and Charleston, South Carolina, are experiencing significant price drops, with Bridgeport seeing a 7.5% decline and a 42.5% reduction in days on market, effectively clearing inventory and boosting sales [9][10] - Kahului-Wailuku, Hawaii, recorded the largest year-over-year decline in luxury pricing, falling nearly 20% to $3.79 million [9][10] Market Dynamics - The overall median time on market for typical listings has lengthened by five days year-over-year, yet the gap between luxury and typical sales times remains tighter than usual, indicating relative strength in luxury buyer demand [4][12] - The luxury market is characterized by a split between areas with rising prices and those undergoing price corrections, suggesting a re-establishment of market equilibrium in certain regions [3][9]