According to the Zhitong Financial APP, domestic real estate stocks were generally under pressure in early trading. As of press time, Seazen (01030) fell 4.17% to HK$1.38; Shimao Group (00813) fell 2.67% to HK$0.73; Sunac (01918) fell 1.71% to HK$1.15; and Yuexiu Property (00123) fell 1.7% to HK$5.19.
On the news front, according to Zhongzi Research Institute, under the continued influence of various policies in the second half of the year, the downward trend in the market will slow down, but resident wait-and-see sentiment and housing price expectations will still impede the pace of market repair, and the market as a whole may still be in the bottoming out phase. It is expected that the sales of newly built commercial housing will fall below 1 billion square meters for the whole year. The price of new houses has fluctuated and adjusted for the past 3 years since 2021, and there is still short-term adjustment pressure on it. Policy efforts are still needed to stabilize housing prices, and there is still downward pressure on housing prices in first-tier cities in the short term.
Guosen Securities pointed out that after various places have successively relaxed their policies on purchase and loan restrictions, the real estate sales data in June has indeed improved. Although there are differences in the degree and sustainability of the improvement, there is a consensus in the market that there has been an improvement. Although it is currently impossible to judge when new house prices will stop falling, and it is difficult to give the true value of real estate assets, the market has been well-prepared for the fall in new house prices. The bank believes that after experiencing a large-scale pullback, the real estate sector has squeezed out the previously over-expected market.