On May 17, the real estate sector was active. As of press time, Airport Shares and Tiandi Diyuan had daily limits, while Binjiang Group, Urban Investment Holdings, and Nanguo Real Estate were among the top gainers.
Many local governments have introduced real estate destocking measures
On May 16, the Dali Prefecture Government of Yunnan issued the "Measures to Further Promote the Stable and Healthy Development of the Real Estate Industry"bet365baccaratImplementation Opinions (Trial)", proposing to accelerate the construction of an urban housing security system based on affordable rental housing, and encourage the purchase of existing housing as affordable rental housing or talent housing. Recently, Lin 'an District of Hangzhou City announced that it plans to purchase a number of commercial housing within the district for public rental housing.
According to the Shanghai Stock Exchange, since the end of April, property market optimization policies in Beijing, Shanghai, Tianjin, Shenzhen, Hangzhou, Xi'an, Chengdu, Nanjing and other places have been intensively "updated", and policies and measures to absorb existing real estate and optimize incremental housing have become a new round of real estate policy adjustment. With the support of a series of policies, indicators such as activity and transaction volume in many real estate markets have further warmed up.
Sector valuation may be gradually repaired
Guolian Securities believes that with the gradual easing of policies, market confidence is expected to be boosted, driving sales to pick up. At the same time, high-cost projects of real estate enterprises are gradually being digested, and gross profit margins are expected to bottom out and rebound. The industry's bottom-building is expected to accelerate, and the valuation of the sector may be gradually repaired. It is recommended to pay attention to central state-owned enterprises with abundant land reserves and smooth financing channels in core areas, as well as high-quality real estate enterprises with the ability to shape improved products.
Guosen Securities said that although the medium-and long-term demand for home purchases is still supported by the urbanization process and improvement and replacement, it must deal with the problems of weak expectations for housing price increases, insufficient income confidence, and high leverage ratios in the short term. In 2023Q4, the proportion of residents expecting house prices to rise is only 12bet365baccarat.3%, which has been lower than the historical average of 25% for 10 consecutive quarters, while the income confidence index has also not been higher than 50% above the boom-and-bust line for 10 consecutive quarters, and the resident leverage ratio has also been close to the average level of developed countries. The government's direct action to "de-inventory" has a positive impact on boosting residents 'confidence in purchasing houses.
Guojin Securities said that real estate destocking is expected to be promoted through "trade-in" and requires policy and financial support such as PSL from the central level; benchmarking against the U.S. real estate and China's aviation industry, stock prices and valuations reflect expectations, and fundamentals are repaired or lagging behind. It is expected that destocking will promote a shift in market expectations, and the bottom of real estate stock prices and valuations has emerged. Pay attention to real estate enterprises that have the ability to continuously acquire land, lay out core plots in core cities, and focus on improving products.