Core Viewpoint - The real estate market in China continues to face deep adjustments, with various indicators showing declines in investment, sales, and construction activities in the first five months of 2025 [1][2][5]. Investment and Development - Real estate development investment reached 36,234 billion yuan, a year-on-year decrease of 10.7% [2]. - Residential investment was 27,731 billion yuan, down 10.0% [2]. - The total construction area for real estate projects was 625,020 million square meters, reflecting a 9.2% decline year-on-year [2]. Sales Performance - New residential property sales amounted to 30,119 billion yuan, a slight decrease of 2.8% compared to the previous year [1][2]. - The total sales area for new commercial housing was 35,315 million square meters, down 2.9% year-on-year [2]. - The sales figures indicate a continued contraction in the market, with various property types experiencing declines [1][2]. Inventory and Financing - As of the end of May, the total unsold commercial housing area was 77,427 million square meters, a reduction of 715 million square meters from April [3]. - The total funds available to real estate developers were 40,232 billion yuan, down 5.3% year-on-year [3]. Regional Analysis - In the eastern region, new commercial housing sales area decreased by 4.5%, while the central region saw a slight increase of 0.3% [3]. - The western region experienced a 2.8% decline in sales area, and the northeastern region had a 6.0% decrease in sales area but a 6.7% increase in sales amount [3]. Market Sentiment - The real estate development prosperity index stood at 93.72 in May, indicating ongoing challenges in the market [4]. - Experts suggest that more efforts are needed to stabilize the market, including reducing mortgage costs and exploring new purchasing models [5].

Core Insights - The real estate development investment in China for the first quarter of 2025 reached 1.9904 trillion yuan, representing a year-on-year decline of 9.9% [1][13] - Residential investment accounted for 1.5133 trillion yuan, down 9.0% compared to the same period last year [1][13] - The overall construction area for real estate development decreased by 9.5% year-on-year, with residential construction area down by 9.9% [3][13] Investment and Construction Data - The total area of housing under construction was 613.705 million square meters, with new construction area dropping by 24.4% to 129.96 million square meters [3][13] - The completed housing area was 130.6 million square meters, down 14.3%, with residential completions at 95.02 million square meters, a decline of 14.7% [3][13] Sales Performance - New residential property sales area was 21.869 million square meters, a decrease of 3.0%, while sales revenue reached 207.98 billion yuan, down 2.1% [4][16] - The sales area for residential properties specifically fell by 2.0%, with sales revenue declining by 0.4% [4][16] Inventory and Funding - The inventory of unsold commercial housing at the end of March was 78.664 million square meters, a reduction of 1.227 million square meters from February [7] - Total funding for real estate development enterprises was 24.729 billion yuan, down 3.7% year-on-year, with domestic loans decreasing by 2.3% [8][14] Market Sentiment - The real estate development prosperity index stood at 93.96 in March, indicating a lower level of market confidence [10][21]