One week market review
This week, the Shenwan real estate index rose 1.23%, the Shanghai and Shenzhen 300 index fell 0.67%, and the relative income was 1.91%. The performance of the sector was stronger than the market.
Industry fundamentals
This week (12.17-12.23), a total of 77857 first-hand houses were sold in 58 key cities tracked by West China real estate group, with a year-on-year growth rate of – 12.7% and a month on month growth rate of 6.4%; The total transaction area was 7.963 million square meters, with a year-on-year growth rate of – 12.1% and a month on month growth rate of – 8.4%.
This week (December 17-december 23), a total of 14433 second-hand houses were sold in 16 key cities tracked by West China real estate group, with a year-on-year growth rate of – 31.1% and a month on month growth rate of – 1.1%; The total transaction area was 1.392 million square meters, with a year-on-year growth rate of – 30.8% and a month on month growth rate of – 3%.
This week (December 17-december 23), the inventory area of commercial housing in 17 key cities tracked by West China real estate group was 199944000 square meters, with a month on month growth rate of 0.7% and a decontamination cycle of 77.1 weeks.
This week (December 13-december 19), 9.145 million square meters of land were supplied, with a year-on-year growth rate of – 78.3%; the average supply price was 771 yuan / square meter, with a year-on-year growth rate of – 50%. The land traded was 22.507 million square meters, with a year-on-year growth rate of – 75.2%.
This week (December 17-december 23), real estate enterprises issued a total of 6.09 billion yuan of credit bonds, with a year-on-year growth rate of – 13% and a month on month growth rate of – 67.5%. Real estate collective trusts issued a total of 4.74 billion yuan, with a year-on-year growth rate of – 68.3% and a month on month growth rate of 73.5%.
Investment advice
This week, on December 22, the people’s Bank of China and the China Banking and Insurance Regulatory Commission jointly issued the notice on doing a good job in M & a financial services for risk disposal projects of key real estate enterprises, encouraging banking financial institutions to do a good job in financial support for M & A of risk disposal projects of key real estate enterprises. Beijing housing provident fund management center issued a notice, proposing ten specific measures to optimize the individual housing loan service of housing provident fund, optimize the loan process and shorten the loan review time limit. On December 23, the housing and Urban Rural Development Bureau of Huzhou City, Zhejiang Province and other three departments issued the notice on Further Strengthening the supervision of commercial housing pre-sale funds, requiring to strengthen the supervision of commercial housing pre-sale funds, and it is strictly prohibited to collect house purchase money outside the supervision account. On December 21, the Ministry of Finance released data. From January to November, the deed tax was 683.7 billion yuan, a year-on-year increase of 8.7%; The land value-added tax was 644.2 billion yuan, a year-on-year increase of 10.4%; The real estate tax was 296.7 billion yuan, a year-on-year increase of 17.7%. According to the data released by the central bank, the one-year LPR decreased by 0.05 percentage points, from 3.85% to 3.8%, and the five-year LPR remained unchanged at 4.65%. On December 25, the people’s Bank of China held a regular meeting for the fourth quarter of 2021, which again mentioned safeguarding the legitimate rights and interests of housing consumers, better meeting the reasonable housing needs of home buyers, and promoting the healthy development and virtuous cycle of the real estate market.
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 statement
Sales were lower than expected, and the real estate regulation policy was tightened.
