On July 19th, mainland real estate stocks fell during trading, as of the time of publication,$CHINA RES LAND (01109.HK)$dropped 5.20%, to HKD 25.5;$LONGFOR GROUP (00960.HK)$dropped 4.75%, to HKD 10.82;$SEAZEN (01030.HK)$dropped 4.46%, to HKD 1.5.
On the news front, according to monitoring data from the China Real Estate Information Corporation (CRIC), although transaction volumes in many cities have fallen in July, the institution predicts that due to bullish policies from the central to local governments since May, the current market still in a demand release period, coupled with supply and demand also decreasing to a seasonal low, there is probably a continuation of stabilization in the third quarter, on par with June. Based on last July being the low point of the year, the expected year-on-year decrease in July will also significantly narrow or even turn positive.
Bank of Communications International has released a report indicating that the fundamental factors of mainland real estate have improved, and data from June has seen a significant rebound, indicating that after market integration, there is greater potential for further growth. According to statistics from the National Bureau of Statistics, under favorable policy measures, the mainland property market has improved for two consecutive months, with sales growth increasing from a monthly rate of 13.2% in May to a monthly rate of 50.9% in June. However, the downward trend in residential prices continues, and although residential property prices in 70 large and medium-sized cities improved on a monthly basis in June, they worsened on an annual basis. Recent comments on the property market reflect speculation that the market has bottomed out, and although the timing and extent of the recovery remain controversial, the bank's channel survey shows that the market adjustment has gradually faded. There is potential for further upside after market integration.