The Zhitong Finance App learned that internal housing and property management stocks had the highest declines in early trading. As of press release,Sunac Services (01516) decreased by 5.17% to HK$2.57;Hejing Taifu Group (01813) fell 4.76% to HK$1; R&F Real Estate (02777) fell 4.17% to HK$1.38; and Times Neighborhood (09928) fell 2.94% to HK$0.66.
According to the news, according to monitoring data from the China Index Research Institute, the sales area of key cities across the country fell by more than 20% month-on-month last week (September 4-10). The increase in the overall transaction scale of the new housing market across the country is not obvious, and it will take time for the policy to take effect. Zhang Dawei, chief analyst at Central Plains Real Estate, analyzed that the peak of the policy of only approving a house and not applying for a loan has quickly passed. The rescue of the property market cannot be stopped or delayed. The market is expecting interest rates for the first home to be cancelled, and home purchases after divorce have been fine-tuned according to policies such as the calculation of two homes. Otherwise, it is expected that this weekend's turnover may drop drastically compared to last weekend.
Furthermore, Fitch Ratings currently expects sales of newly built commercial residential homes across China to fall by 10%-15% in 2023, which is greater than Fitch's previous forecast of a 0%-5% drop. This reflects a decline in turnover and a return of downward pressure on housing prices. Fitch predicts that real estate companies' commercial residential sales area will be about 900 million square meters this year, down from 1.15 billion square meters in 2022.