Jinwu Financial News | Most domestic housing stocks rose. Midea Real Estate (03990) rose 5.8%, C&D International Group (01908) rose more than 4%, China Overseas Development (00688) rose 3.73%, China Jinmao (00817), and Greentown China (03900) rose more than 2%.
Shanghai joined the “trade-in” queue for commercial housing. On May 3, the Shanghai Real Estate Industry Association and the Shanghai Real Estate Agents Association jointly initiated a commercial housing “trade-in” campaign throughout Shanghai. Through the “trade-in” model, it will be easier for residents to replace housing and better support residents' reasonable graded home buying needs. Commercial housing “trade-in” is mainly aimed at homebuyers who plan to sell second-hand housing and buy new homes. Home buyers first reach an intention to buy a new home with the real estate development company, then the real estate brokerage agency gives priority to promoting their old housing transactions. After the old house is successfully sold, the new housing transaction is completed as agreed. More than 20 real estate development companies and nearly 10 real estate brokerage agencies joined the initiative in the first batch. The first batch of more than 30 projects participated in the initiative, mainly in Jiading, Songjiang, Qingpu, Fengxian, and Lingang regions.
Zheshang Securities believes that in the short-term (1-2 years) phase of the fundamentals of the real estate industry, developers that focus on core cities, have strong products, and reduced total land storage are worth focusing on. Judging from the market removal situation, the higher the removal efficiency of land acquisition projects after 2022. Therefore, housing enterprises with rich land reserves acquire more land before 2022, and sales conversion may not be efficient, while housing enterprises that focus on core cities and have a total volume/sales control of around 1-1.5 years have reduced sales and less pressure. Looking at the long-term (3-5 years) dimension, the bank believes that the implementation of a two-track system in the real estate industry will lead to increased pressure on immediate needs and better sales and profit margins for improved products.