CITIC Securities believes that housing prices in core areas of core cities are expected to stabilize by mid-2024.
CITIC Construction Investment pointed out that on May 9, the Hangzhou Housing Security and Real Estate Administration issued a notice on optimizing and adjusting the real estate market regulation policy, completely abolishing housing purchase restrictions.
In addition, this new policy has also optimized property market policies in multiple dimensions, such as controlling land supply, easing initial certification, and the ability to buy a house and settle in.
Since 2024, the Hangzhou property market has weakened significantly. In January-April, new housing sales were 1.45 million square meters, a year-on-year decrease of 49.5%. It is expected that after the introduction of this new policy, the Hangzhou property market is expected to stabilize. Recently, key cities have intensively introduced policies to loosen purchase restrictions. It is expected that the pattern of optimizing regulation policies for first-tier cities to main urban areas and completely abolishing purchase restrictions in second-tier cities will accelerate.
According to the CITIC Securities Research Report, on May 9, Hangzhou issued the “Notice on Optimizing and Adjusting the Real Estate Market Regulation Policy”, which proposed measures such as completely abolishing housing purchase restrictions, expanding the scope of certification of first housing units, and optimizing the credit settlement policy.
On May 9, Xi'an issued the “Notice on Further Promoting the Stable and Healthy Development of the Real Estate Market” to completely abolish housing purchase restrictions.
On May 6, Shenzhen issued the “Notice on Further Optimizing Real Estate Policies” to optimize housing purchase restriction policies by zoning.
The market is paying close attention to fundamental trends after the policy was introduced, and we believe that housing prices in core areas of core cities are expected to stabilize by mid-2024.
Companies related to the real estate sector:
Sunac China (01918), Longhu Group (00960), Ocean Group (03377), Vanke Enterprise (02202), C&D International Group (01908), Yuexiu Real Estate (00123), China Resources Land (01109), etc.;
Property management companies: China Resources Vientiane Life (01209), Poly Real Estate (06049), Midea Real Estate (03990), etc.
Housing agency: Seashell-W (02423), Country Garden Service (06098)