One week market review
This week, the Shenwan real estate index rose by 3.84%, the Shanghai and Shenzhen 300 index fell by 2.14%, and the relative income was 5.98%. The performance of the sector was stronger than the market.
Industry fundamentals
This week (03.18-03.24), a total of 40536 first-hand houses were sold in 58 key cities tracked by West China real estate group, with a year-on-year growth rate of – 49.4% and a month on month growth rate of 4.4%; The total transaction area was 4.43 million square meters, with a year-on-year growth rate of – 47.3% and a month on month growth rate of 8.9%.
This week (March 18-march 24), a total of 13027 second-hand houses were sold in 16 key cities tracked by West China real estate group, with a year-on-year growth rate of – 40.9% and a month on month growth rate of – 8.1%; The total transaction area was 1187000 square meters, with a year-on-year growth rate of – 41.6% and a month on month growth rate of – 12.7%. This week (03.18-03.24), the inventory area of commercial housing in 17 key cities tracked by West China real estate group was 197551000 square meters, with a month on month growth rate of 0.4% and a decontamination cycle of 93.2 weeks.
This week (02.28-03.06), 19.073 million square meters of land were supplied this week, with a year-on-year growth rate of – 47.1%; The average supply price was 3492 yuan / m2, with a year-on-year growth rate of 269.5%. The land sold was 18.995 million square meters, with a year-on-year growth rate of – 61.9%; The land transaction amount was 14.05 billion yuan, with a year-on-year growth rate of – 82.6%.
This week (March 18-march 24), real estate enterprises issued a total of 10.96 billion yuan of credit bonds, with a year-on-year growth rate of – 22.4% and a month on month growth rate of – 13.2%. This week (03.18-03.24), real estate collective trusts issued a total of 3.56 billion yuan, with a year-on-year growth rate of – 79.2%, a month on month growth rate of 9.1% and an average income of 7.69%.
Investment advice
This week, the CSRC said that promoting the healthy development of infrastructure REITs is an important deployment made in the 14th five year plan. At present, 11 public offering REITs products have been listed, the market is running smoothly, and the liquidity and price discovery mechanism are generally good, which is in line with the pilot expectations. At the local level, some banks in Xiangyang and Shiyan, Hubei Province, cut the mortgage interest rate by 40bp to 45bp Postal Savings Bank Of China Co.Ltd(601658) , rural commercial bank and China Construction Bank adjusted the interest rate to be lower than 5.3%. Most banking institutions in Taian, Linyi and Yantai, Shandong Province, generally lowered the interest rate of individual housing loans. The average loan interest rate of the first house is about 5%, and the average interest rate of the second house is about 5.3%
At present, the valuation of the real estate sector is at a low level, with strong performance certainty and high dividends. We highlight Vanke, the leading real estate company with strong performance certainty. We highlight Vanke A, Tsingtao Brewery Company Limited(600600) Tsingtao Brewery Company Limited(600600) 48 . 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
