Hong Kong stock concept tracking | The real estate industry further stabilizes in the first quarter. The real estate sector has rebound space (with concept stocks attached)

Ke Rui real estate posted an article stating that the small spring of the real estate market in early 2025 has arrived as scheduled. The real estate industry has further stabilized, with the year-on-year decline in the scale of commodity housing sales continuing to narrow. The number of cities with decreasing house prices has reached a new low since the second half of 2023, and the residential inventory has seen a month-on-month decrease. In the first quarter of 2025, the volume of land transactions was only about 60% of the volume of new house transactions. Coupled with the progress in land acquisition, idle land management, and the promotion of existing housing, both real estate companies and homebuyers are expecting improvements to continue. Data from the National Bureau of Statistics shows that in the first quarter, the sales area and sales volume of new commercial housing in 40 key cities increased by 1.2% and 4.4% respectively. Trading activities in core cities are becoming more active, and the national real estate prosperity index continues to rise. Thanks to the positive signals reflected in the current market demand and the support of fiscal policies, it is expected that regulatory authorities across the country will further focus on improving expectations for supply and demand in the industry in 2025. As the heat in the land market spreads to new and second-hand housing markets, as well as the expected improvements between cities, the rebound in heat is expected to be more frequent on more indicators and in more cities. Goldman Sachs' Chief China Stock Strategist, Jingjin Liu, pointed out in an institutional dialogue on April 16 that there are signs of stabilization in the real estate market. Especially in first-tier cities, both housing prices and land auctions have been quite strong recently. It is expected that in the coming months, the real estate market may receive more support. A CITIC SEC research report indicates that the signal for the start of a new cycle in the real estate market has appeared. Real estate-related industry chain companies mentioned include: China Overseas (00688), C&D International Group (01908), Yuexiu Property (00123), Greentown China (03900), Sunac (01918), Longfor Group (00960), Sino-Ocean Group (03377), China Vanke (02202), China Resources Land (01109), and Agile Group (00884), among others. Property management companies mentioned include: China Resources Mixc (01209), Poly Property Services (06049), China Overseas Property (02669), and Midea Real Estate (03990). Real estate agencies include: Beike-W (02423) and CG Services (06098).