Domestic housing stocks continued to decline in early trading. As of press release, Ocean Group (03377) fell 4.76% to HK$0.3; Vanke Enterprise (02202) fell 3.24% to HK$5.68; and Midea Real Estate (03990) fell 3.05% to HK$4.13.
The Zhitong Finance App learned that domestic housing stocks continued to decline in early trading. As of press release, Ocean Group (03377) fell 4.76% to HK$0.3; Vanke Enterprise (02202) fell 3.24% to HK$5.68; Midea Real Estate (03990) fell 3.05% to HK$4.13; and R&F Real Estate (02777) fell 2.91% to HK$1.
According to the news, Tianfeng Securities pointed out that compared to the previous month, the cumulative sales volume of new homes in 60 cities in the first two weeks of March was -23.15%/-32.12%/-29.86%, respectively, and the cumulative sales volume of second-hand housing in the first two weeks of March in 17 cities was -10.32%/-7.19%/2.05% compared to November/December/January '24, respectively. Both new and second-hand housing are below the level of the fourth quarter of last year. Furthermore, according to data from the China Index, based on the Spring Festival, as of March 14, '24, the cumulative sales volume of “new houses+second-hand housing” in the 6 sample cities was -24.48%/-45.41% compared to the same period in 22/23.
The bank believes that the combined decline in new and second-hand housing is still large, reflecting that objective pressure on the market still exists. The recovery in second-hand transactions sends a positive signal, but it still relies more on “price for volume”, or there are potential effects such as 1) continuing to squeeze the share of new housing transactions, affecting the annual commercial housing sales scale; 2) a natural decline similar to last year's seasonal release; 3) increased pressure intensifies bearish expectations; 4) price cuts are transmitted to the new housing market, increasing pressure on developers, and affecting profits. Fundamental volume recovery brought about by the revision of price expectations will begin to appear gradually and structurally, but the trend is still far from stabilizing.