One week market review
This week, the Shenwan real estate index rose 10.82%, the Shanghai and Shenzhen 300 index rose 2.43%, and the relative income was 8.39%. The performance of the sector was stronger than the market.
Industry fundamentals
This week (03.25-03.31), a total of 51028 first-hand houses were sold in 58 key cities tracked by West China real estate group, with a year-on-year growth rate of – 47.2% and a month on month growth rate of 9.7%; The total transaction area was 5.243 million square meters, with a year-on-year growth rate of – 45.2% and a month on month growth rate of 5.3%.
This week (03.25-03.31), a total of 15524 second-hand houses were sold in 16 key cities tracked by West China real estate group, with a year-on-year growth rate of – 32.4% and a month on month growth rate of 15.6%; The total transaction area was 1.532 million square meters, with a year-on-year growth rate of – 30.8% and a month on month growth rate of 25.1%.
This week (03.25-03.31), the inventory area of commercial housing in 17 key cities tracked by West China real estate group was 197781000 square meters, with a month on month growth rate of 0.1% and a decontamination cycle of 98.1 weeks. This week (March 21-march 27), 41.313 million square meters of land were supplied this week, with a year-on-year growth rate of 74%; The average supply price was 4772 yuan / m2, with a year-on-year increase of 280.8%. The land sold was 15.062 million square meters, with a year-on-year growth rate of 20%; The land transaction amount was 30.06 billion yuan, with a year-on-year growth rate of 57.4%.
This week (03.25-03.31), real estate enterprises issued a total of 11.64 billion yuan of credit bonds, with a year-on-year growth rate of – 54.4% and a month on month growth rate of – 32.6%. Real estate collective trusts issued a total of 1.13 billion yuan, with a year-on-year growth rate of – 95%, a month on month growth rate of – 65.1%, and an average income of 7.57%.
Investment advice
This week, on March 30, the central bank meeting pointed out that 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. On March 26, the housing loan interest rate in Wuhan was lowered. Since March 25, major banking institutions have implemented the interest rate of the first house and the second house of newly signed mortgage loans at 5.2% and 5.4%. Previously, the loan interest rate of the first house in Wuhan market was 5.63%, down 43bp this time, and the loan interest rate of the second house was 5.88%, down 48bp this time. On March 28, the China Index Institute released data that the overall transaction volume of the real estate market rose in March, and the transaction volume of the first and second tier cities increased month on month, but the transaction data was still in a downward state compared with the same period last year. Specifically, the transaction data of first tier cities in March increased by 12.0% month on month, with the highest increase of 80.4% in Beijing; Guangzhou rose 34.0%, ranking second. On a year-on-year basis, the overall turnover decreased by 44.2%, of which Shanghai decreased significantly by 51.2%; Shenzhen ranked second, with a decline of about 44.9%. The transaction data of second tier representative cities increased by 32.3% month on month and decreased by 47.4% year-on-year. 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.
