Bullish real estate policies in Beijing, taking small steps towards gradual relaxation, have led to increased activity in the housing market trade.

It is reported that the second-hand housing sales volume in June and July has increased significantly compared to the same period of last year, which is expected to further boost the new housing market.

Against the backdrop of changes in the market supply-demand structure, the Beijing real estate market will still mainly remain stable.

Affected by the bullish policy, the second-hand housing sales volume in Beijing in July this year has risen against the trend, reaching 15,575 units, a 3.92% increase from the previous month and a significant 60% increase from the same period last year, and also the first time that it has exceeded 0.015 million units since March last year, setting a new record in nearly 16 months.

On July 15th, the State Council Information Office held a press conference on the operation of the economy in July 2024. At the meeting, the spokesperson of the National Bureau of Statistics, Liu Aihua, said that looking at the major data of the real estate field in July under the influence of a series of policies, the decline of some real estate-related indicators has continued to narrow. But at the same time, it should also be noted that most real estate indicators are still declining, and the overall real estate market is still undergoing adjustment.

In the next stage, according to the spirit of the Central Political Bureau meeting, we should implement new policies that promote the stable and healthy development of the real estate market, adhere to the combination of digesting stock and optimizing increment, actively support the acquisition of stock commodity housing for guarantee housing, further do a good job in guaranteeing and delivering houses, accelerate the construction of a new model for the development of real estate, and promote the stable and healthy development of the real estate market.

Dongxing Securities released a research report stating that the supply and demand of new and second-hand housing in core cities are both in a long-term state of tightness, and the current problems in such core cities are more due to the structural imbalance of supply, rather than insufficient demand. The pent-up rigid demand group that has been suppressed for a long time has pushed up the second-hand housing transaction volume, while the improvement demand for "selling old and buying new" is relatively lagging behind. With the optimization of new housing supply and the release of improvement demand, the new housing market is also expected to improve.

The improvement of the core city market will benefit the high-quality real estate enterprises that focus on core cities.

The current increase in the demand for rigid entry into the core first- and second-tier cities, the increase in the supply of high-quality second-hand houses, and the relative price advantage of some second-tier cities over new houses will continue to support the continuous demand for second-hand house transactions, benefiting leading property/real estate intermediaries such as Ke Holdings (02423), whose store layout are mainly in first- and second-tier cities.

Real estate-related industry chain companies:

China Overseas Land & Investment Ltd (00688), C&D International Group Co., Ltd. (01908), Yuexiu Property Company Limited (00123), Greentown China Holdings Limited (03900), Sunac China Holdings Limited (01918), Longfor Group Holdings Limited (00960), Sino-Ocean Group Holding Limited (03377), China Vanke Co., Ltd. (02202), China Resources Land Limited (01109), and Agile Group Holdings Limited (00884).

Property management companies include China Resources MIXC (01209), Poly Property Services (06049), China Overseas Property Services (02669), and Midea Real Estate (03990).

Real estate intermediaries: Ke Holdings (02423), CG Services (06098)