Â
>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<
Â
Â
The Politburo meeting of the CCP Central Committee mentioned that the demand and supply relation in the real estate market has changed, the first time for the top leadership to express such changes, said CICC in a note.
The change refers to that, after 20 years’ rapid construction, China’s real estate market has largely passed the overheating stage with short supply and the quantity and quality of urban housing has improved significantly, it said.
Given that, demand for new homes in some regions have peaked and entered a downtrend, and in cities with sufficient exiting homes and new home supply, it’s necessary to optimize real estate policy in a city-based approach in order to support reasonable housing demand, it said.
Under the new condition, there is room for appropriate optimization of real estate policies and various regions are expected to step up policy support under the city-based framework, which will likely drive the fundamental indicators to gradually bottom out and recover moderately, according to the note.
In the next 3 to 6 months, there are two main theme lines for real estate stocks. The first is “proactive players” which would first benefit from local housing market recovery, such as China Resources Land, China Overseas, C&D International Group, Yuexiu Property and China Overseas Grand Oceans, while the second is “cash cows”, referring to those with core assets in hand, such as Hang Lung Property.