One week market review
This week, the Shenwan real estate index fell 0.73%, the Shanghai and Shenzhen 300 index rose 1.08%, and the relative income was – 1.81%. The performance of the sector was weaker than the market.
Industry fundamentals
This week (02.11-02.17), we tracked 48953 first-hand houses in 58 key cities, with a year-on-year growth rate of 492.8% and a month on month growth rate of 126.7%; The total transaction area was 5.13 million square meters, with a year-on-year growth rate of 488.2% and a month on month growth rate of 130.1%. This week (02.11-02.17), we tracked a total of 10723 second-hand houses in 16 key cities, with a year-on-year growth rate of 1110.3% and a month on month growth rate of 90.9%; The total transaction area was 996000 square meters, with a year-on-year growth rate of 933.7% and a month on month growth rate of 92.8%. This week (02.11-02.17), the inventory area of commercial housing in 17 key cities tracked by West China real estate group was 197.24 million square meters, with a month on month growth rate of – 0.5% and a decontamination cycle of 81.7 weeks. This week (02.07-02.13), 14.385 million square meters of land were supplied, with a year-on-year growth rate of – 65.6%; The land sold was 6.179 million square meters, with a year-on-year growth rate of – 68.1%; The land transaction amount was 4.62 billion yuan, with a year-on-year growth rate of – 88.1%.
This week (02.11-02.17), real estate enterprises issued a total of 8.63 billion yuan of credit bonds, with a year-on-year growth rate of 0% and a month on month growth rate of 0%. Real estate collective trusts issued a total of 2.53 billion yuan, with a year-on-year growth rate of – 73.6%, a month on month growth rate of 21.9% and an average income of 7.5%.
Investment advice
This week, on February 17, at a press conference held by the national development and Reform Commission, Chen Zhong, deputy director of the Department of human resources and social security of Zhejiang Province, introduced that in addition to the urban area of Hangzhou, the settlement restrictions for college graduates and above will be fully liberalized, and the settlement conditions in Hangzhou are bachelor degree or above. College graduates who work in Zhejiang can enjoy living subsidies ranging from 20000 to 400000 or house purchase and rental subsidies. On February 17, the four major banks in Heze City lowered the down payment ratio of individual housing loans in the city, and the down payment ratio of “no house, no loan” home buyers decreased from the previous lowest 30% to the lowest 20%.
At present, the valuation of the real estate sector is at a low level, with strong performance certainty and high dividends. We mainly recommend leading real estate enterprises with strong performance certainty China Vanke Co.Ltd(000002) , Poly Developments And Holdings Group Co.Ltd(600048) , Jinke Property Group Co.Ltd(000656) , Seazen Holdings Co.Ltd(601155) , Hangzhou Binjiang Real Estate Group Co.Ltd(002244) , Longguang group, Xuhui holding group, country garden, Baolong real estate and Country Garden Service in property management sector, China Merchants Property Operation & Service Co.Ltd(001914) , Xincheng Yue service, Xuhui Yongsheng service, New Dazheng Property Group Co.Ltd(002968) and Nacity Property Service Group Co.Ltd(603506) . Relevant beneficiary objects include Longhu group, China Jinmao, poly property, green city services, etc.
Risk tips
Sales were lower than expected, and the real estate regulation policy was tightened.
