One week market review
This week, the Shenwan real estate index fell 0.96%, the Shanghai and Shenzhen 300 index rose 0.07%, and the relative income was – 1.03%. The performance of the sector was weaker than the market.
Industry fundamentals
This week (04.22-04.28), a total of 47507 first-hand houses were sold in 58 key cities tracked by West China real estate group, with a year-on-year growth rate of – 46.5% and a month on month growth rate of 13.3%; The total transaction area was 4.817 million square meters, with a year-on-year growth rate of – 45.3% and a month on month growth rate of 13.3%. This week (04.22-04.28), a total of 18040 second-hand houses were sold in 16 key cities tracked by West China real estate group, with a year-on-year growth rate of – 33.4% and a month on month growth rate of 16.6%; The total transaction area was 1.973 million square meters, with a year-on-year growth rate of – 24.7% and a month on month growth rate of 31.4%. This week (April 22-april 28), the inventory area of commercial housing in 17 key cities tracked by West China real estate group was 199917000 square meters, with a month on month growth rate of 0.7% and a decontamination cycle of 118.6 weeks.
This week (April 18-april 24), in terms of land supply, 29.428 million square meters of land were supplied this week, with a year-on-year growth rate of 4.2%; The average supply price was 2610 yuan / m2, with a year-on-year growth rate of 87.8%. In terms of land transactions, 18.011 million square meters of land were traded this week, with a year-on-year growth rate of – 1.8%; The land transaction amount was 50.77 billion yuan, with a year-on-year growth rate of 109.1%.
This week (04.22-04.28), real estate enterprises issued a total of 23.63 billion yuan of credit bonds, with a year-on-year growth rate of – 13.5% and a month on month growth rate of 75.8%. This week (04.22-04.28), real estate collective trusts issued a total of 1.21 billion yuan, with a year-on-year growth rate of – 93.9%, a month on month growth rate of – 66.9% and an average income of 7.58%.
Investment advice
On April 27, the official website of the national development and Reform Commission released “actively expand effective investment and promote steady and healthy economic development”. Real estate investment maintained positive growth. Promote the healthy development of real estate investment trusts (REITs) in the field of infrastructure, revitalize stock assets and form a virtuous circle of investment. Standardize and promote government social capital cooperation (PPP). On April 24, Tianjin housing provident fund management center issued the draft for comments on policies related to the adjustment of provident fund. If the deposited employees apply for individual housing provident fund loans to buy the first house of the family, the maximum loan limit is 800000 yuan. On April 25, Wuxi Health Commission issued the notice on actively promoting the improvement of living conditions of families with two or more children. For registered residence families with two or three children in the city who apply for provident fund loan for the first time to purchase their first self occupied house, if both the borrower and the spouse meet the loan conditions, the maximum loan amount shall be adjusted to 1million yuan. On the 28th, the central bank released the operation of money and credit in the Yangtze River Delta in the first quarter of 2022. Loans to the household sector increased by 361.8 billion yuan, a year-on-year increase of – 372 billion yuan, of which short-term loans increased by 50.6 billion yuan and medium and long-term loans increased by 311.2 billion yuan.
At present, the regulatory policies of the real estate industry continue to relax, the sector valuation is expected to be further repaired, and the performance is relatively stable. We mainly recommend leading real estate enterprises with strong performance certainty China Vanke Co.Ltd(000002) , Poly Developments And Holdings Group Co.Ltd(600048) , China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) , Hangzhou Binjiang Real Estate Group Co.Ltd(002244) , Xuhui holding group, as well as country garden service, China Merchants Property Operation & Service Co.Ltd(001914) , xinchengyue 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, Greentown China, China overseas development, poly property, Greentown services, etc.
Risk tips
Sales were lower than expected, and the real estate regulation policy was tightened.
