The latest data shows that the number of cities experiencing a MoM decline in housing prices increased in May, indicating that the market is once again showing signs of adjustment. According to the housing price data for 70 cities nationwide released by the National Bureau of Statistics (NBS) on June 16, in May 2025, the number of cities with a MoM increase in new home prices was 13, a decrease of 9 cities from the previous month; the number of cities with a decline was 53, an increase of 8 cities from the previous month. For second-hand home prices, 3 cities saw a MoM increase, a decrease of 2 cities from the previous month; 67 cities experienced a decline, an increase of 3 cities from the previous month. "Overall, policies aimed at promoting the stabilization of the real estate market have continued to show effectiveness, and the real estate market operated relatively smoothly in May. However, it should be noted that the real estate market is still in the process of adjustment, market confidence needs to be continuously restored, and the supply-demand relationship in the market still needs improvement. Continuous efforts are required to promote the stabilization of the real estate market," said Fu Linghui, spokesperson for the NBS and director of the Department of Comprehensive Statistics of National Economy, at a press conference held by the State Council Information Office. For new homes, the MoM decline in the new residential housing price index for 70 cities nationwide was 0.2% in May, slightly wider than the previous month. Specifically, in first-tier cities, the MoM new home sales price changed from flat in the previous month to a decline of 0.2% in May; in second-tier cities, the MoM sales price of new residential homes changed from flat in the previous month to a decline of 0.2%; in third-tier cities, the MoM sales price of new residential homes declined by 0.3%, with the decline widening by 0.1 percentage points from the previous month. Among the 13 cities with rising housing prices, the top 5 cities in terms of housing price index increases were Hangzhou, Shanghai, Nanning, Urumqi, and Shenyang. Among them, Hangzhou led the gains among the 70 cities with a 0.8% increase. Shanghai was the only first-tier city where new home prices rose against the trend, with an increase of 0.7%, second only to Hangzhou; the other three first-tier cities, Beijing, Guangzhou, and Shenzhen, saw housing prices pull back by 0.4%, 0.8%, and 0.4%, respectively. "The MoM increase in Shanghai's new home prices is attributed to the concentrated launch of high-end properties in the market, attracting significant attention from high-net-worth individuals, thereby boosting market enthusiasm and raising the overall average price of Shanghai's new home market. Hangzhou stood out among second-tier cities, with a heated land market driving up interest in property searches in surrounding areas and injecting strong confidence into the real estate market," said Zhang Bo, president of the 58 Anjuke Research Institute. Compared to the new home market, the second-hand home market faced more pronounced pressure. Data showed that the MoM decline in the price index for 70 cities was 0.5% in May. Among them, the MoM decline in the second-hand residential housing price index for first-tier cities was 0.7%, widening by 0.5 percentage points from the previous month, with Beijing, Shanghai, Guangzhou, and Shenzhen experiencing declines of 0.8%, 0.7%, 0.8%, and 0.5%, respectively. In second- and third-tier cities, the selling prices of second-hand residential properties both declined by 0.5% MoM, with the rate of decline expanding by 0.1 percentage points each. "It has become commonplace for second-hand housing to adopt a volume discount strategy. Compared to April, although the number of cities where second-hand housing prices have fallen has increased, it should also be noted that this has led to a rise in home-search enthusiasm and an increase in trading volume," said Zhang Bo. According to the 58 Anjuke Leading Index, the home-search enthusiasm diffusion index rose by 0.14 points MoM in May 2025, indicating a decrease in the number of cities with declining enthusiasm and an increase in the number of cities with rebounding enthusiasm. Analysts believe this serves as a key improvement signal for the market to begin experiencing a price and volume correction in June. Meanwhile, the diffusion index for the duration of listed properties decreased from 0.5 to 0.38, indicating that the duration of listed properties in most cities has shortened and the de-stocking speed has accelerated. In Zhang Bo's view, this change mainly stems from two aspects: firstly, the recovery in home-search demand has improved the matching efficiency between buyers and sellers; secondly, real estate agents are promoting price reductions for high-value properties to facilitate transactions. It is worth noting that the market expects more substantial policy support. The State Council Executive Meeting held on June 13 proposed to "drive the real estate market to stabilize and rebound with greater force." Industry insiders believe this sends a strong signal to the market to further stabilize the housing sector. The meeting pointed out the need to steadily and forcefully promote the construction of "quality housing," incorporate it into the urban renewal mechanism to strengthen work coordination, and provide policy support in areas such as planning, land, finance, and banking. It is necessary to conduct a comprehensive survey of the land already supplied and ongoing real estate projects nationwide, further optimize existing policies, enhance the systematic and effective implementation of policies, and adopt a multi-pronged approach to stabilize expectations, activate demand, optimize supply, and mitigate risks, thereby driving the real estate market to stabilize and rebound with greater force. "The statement at this State Council Executive Meeting about 'driving the real estate market to stabilize and rebound with greater force,' with stronger wording, implies that more targeted incremental measures may be on the way," said Chen Shen, an analyst at Huatai Securities. He further pointed out that the policy ideas of "conducting a comprehensive survey, optimizing, and adopting a multi-pronged approach" proposed at this State Council Executive Meeting are noteworthy. Among them, conducting a comprehensive survey of the land already supplied and ongoing projects nationwide aims to clarify key issues such as land idleness, providing data support for subsequently revitalizing stock resources through means such as acquisition and storage, and optimizing the rhythm of land supply. Secondly, promoting the construction of "quality housing" and incorporating it into the urban renewal system is a way to activate demand by optimizing supply. Meanwhile, exerting comprehensive efforts in areas such as planning, land, finance, and banking emphasizes enhancing the systematic and effective implementation of existing policies to boost market confidence. Yuan Hao, an analyst at Shenwan Hongyuan, also believes that although the total transaction volume of China's new and second-hand housing markets has remained relatively stable for nearly three years, the current volume and price have not yet fully entered a positive cycle. Therefore, it is expected that there is still a possibility of increasing policy support in the future. "The recent statement on halting the decline and stabilizing the real estate market has been adjusted from 'continuously consolidating' to 'greater efforts,' indicating that 'halting the decline and stabilizing' remains the main policy tone. It is expected that a new round of supportive policies may be introduced, which may include an interest rate cut on home loans, increasing the supply of high-quality housing, optimizing acquisition and storage, and advancing urban renewal projects," Yuan Hao said.

To boost market vitality, Guangzhou has taken a crucial step in optimizing its real estate policies. On June 13, Guangzhou released the "Implementation Plan for Special Actions to Boost Consumption (Draft for Public Comment)", seeking public feedback. The plan explicitly proposes to "systematically reduce consumption restrictions, optimize real estate policies, comprehensively lift purchase restrictions, sales restrictions, and price caps, and lower down payment ratios and interest rates for loans." This draft for public comment views real estate consumption as a "key link" in boosting the overall vitality of the consumer market. Industry analysts generally believe that the implementation of this series of policies will effectively stimulate Guangzhou's property market and accelerate the process of stabilizing housing prices. More critically, Zhang Bo, President of the 58 Anjuke Research Institute, stated that Guangzhou, as a first-tier city, sending a comprehensive and clear signal of policy easing, indicates an increased likelihood of further policy relaxation in first-tier cities. Clear Signal of Comprehensive Easing "This move marks Guangzhou as potentially the first first-tier city in the country to comprehensively lift the 'four restrictions'—purchase restrictions, sales restrictions, price caps, and loan restrictions," Zhang Bo told reporters. In fact, Guangzhou had already laid the groundwork for easing real estate policies. Chen Xueqiang, Research Director of the South China Branch of the China Index Academy, said in an interview with reporters that the comprehensive lifting of sales and purchase restrictions mentioned in this "Draft for Public Comment" had already been fully implemented in Guangzhou in May and September 2024, respectively. Although no official document had been previously issued regarding the lifting of price caps, the policy had already been in practice, meaning developers still needed to register prices, but the government no longer provided guidance prices. Regarding credit policies, Chen Xueqiang added that the current down payment ratios for first-time and second-time commercial loans in Guangzhou are both 15%, with the first-time commercial loan interest rate at 3% and the housing provident fund interest rate at 2.6%, which are already at relatively low levels. There is room for further reductions in the down payment ratios for housing provident fund loans in the future. From the perspective of Guangzhou's own real estate market situation, policy adjustments are also very necessary. According to Zhang Bo, based on housing price data released by the National Bureau of Statistics, Guangzhou is a first-tier city facing relatively significant downward pressure on housing prices, with both the new and second-hand housing markets remaining in a downward trend this year. Although Anjuke's online data shows that the overall second-hand listing prices stabilized in June, price declines were more pronounced in peripheral areas such as Baiyun, Panyu, Nansha, and Zengcheng. "Therefore, by comprehensively lifting purchase restrictions, sales restrictions, and price caps, and lowering down payment ratios and interest rates for loans, the aim is to eliminate administrative intervention, allow the market to return to supply and demand-driven dynamics, boost property transactions, and accelerate the stabilization of housing prices."Zhang Bo said. Chen Xueqiang also believes that the draft for public comments explicitly expands the scope of cancellation to include restrictions on resale and price caps, and emphasizes reducing down payment ratios and interest rates. This is a comprehensive confirmation of the policies already implemented, sending a strong signal of easing to the market. Several analysts have pointed out that among first-tier cities, Guangzhou has frequently taken the lead in introducing easing measures in the past, and the new policies in Guangzhou this time may continue to trigger a chain reaction, with other first-tier cities potentially following suit in relaxing their policy restrictions. Multi-dimensional Efforts to Activate Demand In addition to easing core restrictive measures, Guangzhou's current plan also deploys measures from multiple angles, aiming to activate latent demand and comprehensively meet housing consumption needs. The plan explicitly proposes to steadily advance the renovation of urban villages and old residential communities, with plans to initiate renovation of over 150 old residential communities and upgrade over 9,000 old residential elevators by 2025, achieving fixed asset investment of 100 billion yuan in urban village renovation. "Such quantitative targets demonstrate Guangzhou's emphasis on urban renewal and its determination for sustained investment," Zhang Bo analyzed. As a core supporting measure for optimizing Guangzhou's real estate policies, the renovation of old residential communities has been deeply advanced in recent years, leading the nation. Through institutional innovation, diverse participation, and precise implementation, it has achieved a positive interaction between improving people's livelihoods and urban development. Meanwhile, Yan Yuejin emphasized that urban village renovation will effectively promote the release of latent home-buying or housing demand. The plan also proposes to "advance the use of special loans to purchase existing commercial housing as resettlement housing." In fact, Guangzhou has been at the forefront nationwide in terms of special bond acquisitions and storage. Yan Yuejin believes that the mention of this in the current plan indicates that special loans will continue to play a significant role in the subsequent acquisition of existing commercial housing for resettlement purposes. Furthermore, the plan requires the continuous optimization of housing provident fund usage policies, supporting depositors in applying for individual housing loans from the housing provident fund while withdrawing funds from it to pay for home down payments, and further optimizing policy measures for rent extraction. Industry insiders believe that through the comprehensive withdrawal of restrictive policies, the continuous optimization of credit policies, as well as a stimulus policy package of supporting measures including urban village renovation, utilization of existing housing, and housing provident fund support, Guangzhou is striving to unblock the housing consumption chain and inject confidence into the market. If the policies are smoothly implemented, Guangzhou will not only become the first first-tier city to bid farewell to the era of "four restrictions" (restrictions on purchases, sales, prices, and loans), but it will also provide a reference sample for other major cities.

During this year's Dragon Boat Festival holiday, the performance of the new home market varied. Data released by Centaline Property on June 3 showed that a total of 46,100 m² of newly built commercial residential properties were sold in Shanghai during this year's Dragon Boat Festival holiday (5.31-6.2), up 87.4% YoY. "According to our monitored data, over 100 projects in Shanghai recorded sales contracts during the Dragon Boat Festival holiday. Most projects had single-digit sales, but there were still some popular projects with significant sales volumes. Among these, some high-quality projects, due to their large sales volumes, drove up the transaction data," said Lu Wenxi, Senior Research Manager at Centaline Property. In Wuhan, data released by the China Index Academy today showed that 571 newly built commercial residential properties were registered online in Wuhan during this year's Dragon Boat Festival holiday, with a registered area of 64,900 m², an increase of 26% compared to the holiday last year. It is understood that the increase in transaction volume in Wuhan during this year's Dragon Boat Festival holiday was mainly due to developers seizing the holiday opportunity to increase their marketing efforts and launch new projects. Many projects obtained sales permits and were launched before the holiday. Projects with good sales performance were mostly newly planned projects with significant product advantages, leading to better sales. In Shenzhen, according to statistics from the Shenzhen Centaline Research Center, during this year's Dragon Boat Festival holiday (5.31-6.2), 194 new residential properties (including both existing and pre-sale properties) were sold in Shenzhen, including 167 pre-sale new residential properties, down 23.4% compared to the Dragon Boat Festival holiday last year; 97 second-hand residential properties were sold, up 32.9% YoY. Meng Xinzeng, Senior Analyst at the China Index Academy, introduced that during this year's Dragon Boat Festival holiday, some projects in certain cities did perform well. However, overall, although most cities continued their previous sales promotions, the market performance remained relatively mediocre. He stated that, based on the market transaction situation in May, the MoM price increase of new homes in 100 cities expanded, while the second-hand home market continued the trend of "volume discount." According to data monitored by the China Index Academy, in May 2025, the average price of newly built residential properties in 100 cities nationwide was 16,815 yuan/m², up 0.30% MoM, with the increase expanding by 0.16 percentage points compared to April, and up 2.56% YoY. Several industry insiders told reporters that the increase in average prices was somewhat related to the driving factors of the transaction structure. "The active performance of improved housing projects has driven the continued increase in average prices in May, especially in first-tier cities, where the increase was more pronounced. Among these, first-tier cities saw a 0.9% MoM increase, with the growth rate rising by 0.53 percentage points compared to the previous month. At the same time, it should be noted that second-tier cities only saw a slight 0.06% MoM increase, a decrease from the 0.1% increase in the previous month, while third- and fourth-tier cities continued to see MoM declines."Li Yujia, the chief researcher at the Guangdong Provincial Housing Policy Research Center, said. Regarding this phenomenon, the president of the 58 Anjuke Research Institute told reporters that, from the supply side, mid-year is typically an important period for property sales. Developers tend to accelerate the launch of new projects in high-tier cities, and the increase in the supply of high-quality properties has become a significant force driving up market transaction activity. "Many real estate enterprises are currently betting on 'high-end improvement properties,' leading to a concentrated entry of high-quality projects in core cities. Additionally, the heat in the land market in core cities also spills over into the new home market. Cities like Beijing, Shanghai, and Hangzhou have all auctioned off plots with high total and unit prices. In particular, Hangzhou's overall premium rate significantly outpaces other cities, which has also played a role in boosting market enthusiasm and expectations," Zhang Bo said in an interview with reporters. Industry insiders pointed out that while projects in prime locations in some high-tier cities are selling well, it should also be noted that the MoM decline in second-hand housing prices widened in May, with varying degrees of pullbacks observed across all tier cities. Data from the China Index Academy showed that in May 2025, the average price of second-hand residential properties in 100 cities was 13,794 yuan/m², down 0.71% MoM, with the decline widening by 0.02 percentage points compared to March; it was down 7.24% YoY. Li Yujia introduced that since April, the listing volume of second-hand homes has continued to increase, particularly with a rise in the listing volume of large-sized units in the market. "The increase in replacement demand among some homeowners has led to a growth in the listing volume. The entry of improved new properties into the market has become more pronounced in competition with existing homes. Coupled with an increase in homeowners willing to sell at a discount, this has resulted in a more noticeable adjustment in second-hand home prices," Li Yujia said. In response, Zhang Bo also pointed out that due to policy adjustments in the new home market and concessions from developers, some homebuyers may shift to the new home market, intensifying competition in the second-hand home market. He predicts that if the listing volume of second-hand homes continues to increase, it may force second-hand home prices to continue to pull back. "From the perspective of the second-hand home market, due to factors such as land scarcity, large population inflows, and high levels of economic development in the core areas of hot cities, home prices are expected to remain relatively stable. Some scarce properties with location advantages may even see a slight rise. However, properties without unique location or resource advantages will face market competition pressures. For some small and medium-sized cities with large inventories, the destocking pressure in the second-hand home market remains significant, and it is still necessary to continue promoting transactions through measures such as price reductions," Zhang Bo added. Meng Xinzeng also believes that after the school district demand for second-hand homes has been released in stages, transactions are expected to gradually stabilize by mid-year. Under the influence of high listing volumes, "volume discount" will remain the mainstream in the second-hand home market in the short term.

The second round of coke price cuts has been implemented. The coke procurement prices of large steel mills in Hebei have been reduced, with a decrease of 50 yuan/mt for wet quenched coke and 55 yuan/mt for coke dry quenching. The specific situation after adjustment is as follows: Grade 1 wet quenched coke (A≤12.5, S≤0.7, CSR≥65, MT≤7) is priced at 1,410 yuan/mt; Grade 1 coke dry quenching (A≤12.5, S≤0.7, CSR≥65, MT≤0) is priced at 1,625 yuan/mt. The above prices are tax-inclusive, delivered to the mill and payable upon acceptance, effective from 0:00 on May 28, 2025.

The central bank's interest rate cut policy was implemented as scheduled, and the Loan Prime Rate (LPR) was adjusted accordingly. On May 20, the LPR quotes for May were released: the LPR for loans with a maturity of over five years was 3.5%, down from 3.6% the previous month. The LPR for one-year loans was 3%, down from 3.1% the previous month. This is a significant move in monetary policy following the central bank's announcement of RRR cuts and interest rate cuts in early May. Researchers pointed out that with the five-year LPR falling to a historical low, the mortgage rate on existing home loans for first-time homebuyers nationwide will enter the "2%" era, further reducing the monthly mortgage payment costs for homebuyers. Coupled with policies such as the reduction in the housing provident fund interest rate and adjustments to the mortgage rate on existing home loans, the real estate market is set to undergo a new round of systematic cost optimization. For example, if a commercial loan of 1 million yuan is taken out for 30 years with equal principal and interest repayments, a 10 basis point drop in the LPR will reduce the monthly mortgage payment by 56 yuan, resulting in a cumulative reduction of 20,000 yuan over 30 years. The mortgage rate on existing home loans for first-time homebuyers nationwide is expected to fall to 2.95%. "Currently, the policy floor for mortgage rates on first-time and second-time home purchases has been lifted nationwide, and the mortgage rate on existing home loans for first-time homebuyers in many cities has already fallen to a historical low of around 3.0%. This reduction in the LPR for loans with a maturity of over five years will help guide mortgage rates to fall further across the country, continuing to reduce the home purchase costs for homebuyers," said Chen Wenjing, Director of Policy Research at the China Index Academy. Zhang Dawei, Chief Analyst at Centaline Property, also told reporters, "This 10 basis point drop in the LPR means that the mortgage rate on existing home loans for first-time homebuyers nationwide, which has hovered around the 3% mark for nearly a year, will now enter the 2% range." According to statistics from the Centaline Property Research Institute, the weighted average interest rate for newly issued commercial personal housing loans nationwide in Q1 2025 was 3.11%, showing a slight fluctuation from 3.10% in Q4 2024 (it was around 3.33% in Q3 2024). The average mortgage rate on existing home loans for first-time homebuyers was around 3.06%. "It is expected that after this interest rate cut, the mortgage rate on existing home loans for first-time homebuyers nationwide will fall to around 2.95%," Zhang Dawei said. He further stated that before the interest rate cut, the mortgage rate on existing home loans for first-time homebuyers in most cities had already fallen to between 2.8% and 3%. Currently, the mortgage rates on existing home loans for first-time homebuyers in Beijing, Shanghai, and Shenzhen are all LPR-45BP. After this interest rate cut, the highest mortgage rate on existing home loans for first-time homebuyers in first-tier cities will fall to 3.05%, while other cities will see a comprehensive reduction to around 2.9%. Taking Beijing as an example, the previously implemented mortgage rates on existing home loans for first-time and second-time home purchases were 3.15% (LPR-45BP) and 3.35% (outside the Fifth Ring Road, LPR-25BP)/3.55% (inside the Fifth Ring Road, LPR-5BP), respectively. After this adjustment, the mortgage rates on existing home loans for first-time and second-time home purchases in Beijing are expected to be adjusted to 3.05% (LPR-45BP) and 3.25% (outside the Fifth Ring Road, LPR-25BP)/3.45% (inside the Fifth Ring Road, LPR-5BP), respectively. Among them, the mortgage rates on existing home loans for first-time home purchases and second-time home purchases outside the Fifth Ring Road have both fallen to historical lows. For homebuyers, the benefits of an interest rate cut are evident. An industry insider told reporters that over a 30-year repayment period, the cumulative interest savings from this interest rate cut would be substantial. Many potential homebuyers who were previously deterred by high interest rates now find their home-buying plans more feasible as costs decrease following the interest rate reduction. Chen Wenjing believes that the recent LPR reduction will also drive down the mortgage rate on existing home loans. After the mortgage rate re-pricing date, the mortgage rate on existing home loans can follow suit and decrease, thereby reducing the repayment pressure on homeowners who have already purchased properties. Looking back at history, according to statistics from Centaline Property, the Loan Prime Rate (LPR) has undergone multiple reductions, with a cumulative decline of 60 basis points. Zhang Dawei stated that, observing the trend, amidst a complex economic environment, the market expects monetary policy to become more accommodative. "With the reduction in deposit interest rates, it is likely that mortgage rates will continue to decline in the future." Conducive to consolidating the stable trend of the real estate market The recent LPR reduction is not an isolated event but a key part of the central bank's series of stimulus policy packages. On May 7, departments such as the People's Bank of China (PBOC), the National Financial Regulatory Administration, and the China Securities Regulatory Commission held a press conference, during which the PBOC governor announced a reduction in the reserve requirement ratio (RRR) and policy interest rates. Specifically, the interest rate for the 7-day reverse repo operations in the open market was lowered from the current 1.5% to 1.4%, and it is expected that this will lead to a synchronous decline of approximately 0.1 percentage point in the Loan Prime Rate (LPR). Subsequently, on May 20, the 1-year and over-5-year LPRs were reduced by 10 basis points, with the reduction in line with market expectations. In addition, on May 7, the PBOC also announced a 0.5 percentage point reduction in the RRR, which is expected to provide approximately 1 trillion yuan in long-term liquidity to the market; a 0.25 percentage point reduction in the interest rate for individual housing provident fund loans, with the interest rate for first-time home purchases with a term of over five years lowered from 2.85% to 2.6%, and interest rates for other terms adjusted accordingly. "Overall, there are still many external uncertainties and instability factors recently. The successive implementation of RRR and interest rate cuts since May will help consolidate the stable operation of the macro economy and also contribute to the stability of the real estate market," Chen Wenjing said. Industry insiders pointed out that with the reduction in housing provident fund loan interest rates and the recent reduction in the over-5-year LPR, the cost of home purchases for homebuyers will be further reduced, supporting the release of residents' housing demand. According to a research report by Orient Securities, the decline in new home sales volume in the first quarter of this year narrowed significantly, with signs of price stabilization emerging in some high-tier cities. The second-hand housing market continued the trend of volume discount. Pan Gongsheng, governor of the People's Bank of China, previously stated, "Based on the economic and financial performance and the effectiveness of various policy tools, we can further expand the scale of these tools and improve their policy elements." Consequently, Chen Wenjing anticipates that in the future, more policies providing financial support for the real estate sector are expected to continue to be implemented, such as financial policies to support the sale of completed homes and funding for urban renewal projects. "Given the seasonal effects and fluctuations in exports during Q2, the real estate market is facing certain downward pressure. It is expected that real estate policies in Q2 will lean towards providing a safety net rather than strong stimulus measures. There may be policies introduced to optimize the acquisition and storage of commercial housing, as well as supporting policies for urban village renovation. Some industry experts also believe there is a possibility of further easing in first-tier cities. If these measures are implemented, they will play a role in further stabilizing market expectations," said Zhao Xuxiang, an analyst at Orient Securities.

The real estate market in April saw a slight pullback in popularity. According to the latest data, both new and existing home prices showed signs of adjustment, with market confidence and transaction momentum needing further improvement. Based on the housing price data for 70 cities nationwide released by the National Bureau of Statistics (NBS) on May 19, in April 2025, the number of cities where new home prices rose MoM was 22, a decrease of 2 cities from the previous month; 45 cities experienced a decline, an increase of 4 cities from the previous month. For existing home prices, 5 cities saw a MoM increase, a decrease of 5 cities from the previous month; 64 cities experienced a decline, an increase of 8 cities from the previous month. Fu Linghui, spokesperson for the NBS, stated that under the influence of various policies aimed at halting the decline and stabilizing the real estate market, China's real estate market has continued to move towards halting the decline and stabilizing this year. Transactions in some first- and second-tier cities have recovered to some extent, and housing prices have remained generally stable. "However, it should also be noted that the overall real estate market is still in the process of adjustment and transformation. Rigid and improvement-oriented demand remains to be released, and the pressure to destock real estate in some regions is still relatively high. Continuous efforts are still needed to promote the halting of the decline and stabilization of the real estate market." Data shows that the MoM growth rate of the new commercial residential housing price index for 70 cities nationwide in April was -0.1%. Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, pointed out that the weak performance of the new home price index in that month was mainly due to the fact that April entered the off-season after the "little spring" sales peak. Specifically, in April, the MoM growth rate of new commercial residential housing sales prices in first-tier cities turned flat from a 0.1% increase in the previous month; in second-tier cities, it remained flat MoM; in third-tier cities, it decreased by 0.2% MoM, the same rate of decline as the previous month. The top five cities in terms of housing price index growth were Dalian, Shanghai, Tianjin, Hangzhou, and Taiyuan. "Currently, there are mainly two types of cities with relatively resilient markets. One type consists of cities with a very high urban hierarchy, such as Shanghai and Hangzhou; the other type includes cities like Tianjin and Taiyuan, where supply and demand indicators are relatively stable," said Yan Yuejin, deputy director of the E-House China Research and Development Institute. It is worth noting that new home prices in first-tier cities ended a four-month consecutive upward trend. Among them, Shanghai led the gains in first-tier cities, with a MoM increase of 0.5%, followed by Beijing with a 0.1% MoM increase, while Guangzhou and Shenzhen saw decreases of 0.2% and 0.1%, respectively. "The market conditions among first-tier cities also diverged in April. New home prices in Beijing and Shanghai rose, indicating that the real estate markets in these two cities still have certain supporting factors. In particular, the overall popularity of both new and existing homes in Shanghai still showed a slight increase. Driven by high-end improvement projects, the new home market in Shanghai in April continued to see a sustained rise in popularity. This can be attributed to its unique urban status and market demand structure, as well as its efforts to increase the supply of new homes in core areas," said Zhang Bo, President of the 58 Anjuke Research Institute. The adjustment in the second-hand housing market has been more pronounced. In April, the second-hand housing price index for 70 cities fell by 0.4% QoQ, a significant increase from the -0.2% decline in the previous month. Among them, the selling prices of second-hand homes in first-tier cities shifted from growth to decline, falling by 0.2% QoQ, compared to a 0.2% increase in the previous month. In second- and third-tier cities, the selling prices of second-hand homes both fell by 0.4% QoQ, with the decline expanding by 0.2 and 0.1 percentage points, respectively, compared to the previous month. "The weakening market transactions are partly related to seasonal factors. Historically, housing prices tend to weaken in Q2. Moreover, the increased supply of high-quality homes in the new housing market has had a certain impact on the second-hand housing market," said Li Yujia. As the supply-side reform in the new housing market takes effect, the transaction cycle between new and second-hand homes is accelerating, with replacement demand driving faster transactions, which has a positive effect on halting the decline in second-hand housing prices. At the policy level, the central and local governments have taken proactive actions since April, introducing multiple measures to stabilize the real estate market. The April 25 meeting of the Political Bureau of the CPC Central Committee emphasized the need to intensify urban renewal efforts, advance the renovation of urban villages and dilapidated houses in an orderly manner, accelerate the construction of a new model for real estate development, increase the supply of high-grade housing, optimize policies for acquiring existing commercial housing, and continuously consolidate the stable trend of the real estate market. Cao Jingjing, General Manager of the Index Research Department at China Index Academy, believes that the Political Bureau's statement on the real estate market at the end of April, shifting from "halting the decline and stabilizing the market" since September 26 last year to "continuously consolidating stability" this time, not only reflects the central government's objective assessment of the recovery in real estate sales since Q4 last year but also demonstrates a full understanding of the ongoing pressures in the market. The market still requires sustained policy efforts to further consolidate the stable trend. It is expected that various policies will continue to be implemented at an accelerated pace, focusing on areas such as urban village renovation, high-grade housing supply, and the acquisition of existing housing.

SMM News on May 19: On May 19, driven by positive macroeconomic expectations, including the National Bureau of Statistics (NBS) making a statement, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council recently issuing the "Opinions on Continuously Promoting Urban Renewal Actions," favorable local policies, market capital inflows, and the stability and increase in housing prices in first-tier cities like Beijing in April, the real estate sector strengthened. By the close of trading on the 19th, the real estate services sector rose by 2.4%, and the real estate development sector increased by 2.66%. In terms of individual stocks, multiple stocks such as Airport Co., Ltd., Shahe Co., Ltd., Huayuan Property Co., Ltd., Haitai Development Co., Ltd., China Fortune Land Development Co., Ltd., and Dianzicheng Co., Ltd., hit their daily limits. Rongsheng Development Co., Ltd., Jingneng Real Estate Co., Ltd., Nandu Property Co., Ltd., and Shenzhen Zhenye Group Co., Ltd. (A-share) were among the top gainers. On the news front: Fu Linghui, spokesperson for the National Bureau of Statistics, stated that the real estate market was basically stable in April, with broad prospects for improving the quality and efficiency of real estate construction! Fu Linghui also mentioned that in the next phase, it is necessary to earnestly implement the decisions and deployments of the Party Central Committee and the State Council, proactively adapt to the reality of significant changes in the supply-demand relationship in the real estate market, strengthen policy coordination, continuously increase the supply of "high-quality housing," actively promote urban renewal actions and the construction of affordable housing, accelerate the establishment of a new model for real estate development, better meet the people's needs for a better living environment, and promote the steady and healthy development of the real estate market. News Front [National Bureau of Statistics: Since the beginning of the year, China's real estate market has continued to move towards halting declines and stabilizing, with transactions in some first- and second-tier cities showing signs of recovery] Fu Linghui, spokesperson for the National Bureau of Statistics, stated that under the effect of various policies aimed at halting declines and stabilizing the real estate market, since the beginning of the year, China's real estate market has continued to move towards halting declines and stabilizing, with transactions in some first- and second-tier cities showing signs of recovery, and housing prices generally stable. However, it should also be noted that the overall real estate market is still in the process of adjustment and transformation. Rigid and improvement-oriented demand remains to be released, and the pressure to sell off real estate in some regions is still relatively high. Continuous efforts are still needed to promote the halting of declines and stabilization of the real estate market. 》Click to view details [YoY decline in sales prices of commercial residential buildings narrows across all city tiers] In April, the sales prices of newly built commercial residential buildings in first-tier cities decreased by 2.1% YoY, with the decline narrowing by 0.7 percentage points from the previous month. Among them, Shanghai saw an increase of 5.9%, while Beijing, Guangzhou, and Shenzhen experienced decreases of 5.0%, 6.3%, and 3.0%, respectively. The sales prices of newly built commercial residential buildings in second- and third-tier cities decreased by 3.9% and 5.4% YoY, respectively, with the declines narrowing by 0.5 and 0.3 percentage points, respectively. In April, the selling prices of second-hand residential properties in first-tier cities decreased by 3.2% YoY, with the decline narrowing by 0.9 percentage points compared to the previous month. Among them, Beijing, Shanghai, Guangzhou, and Shenzhen saw decreases of 1.0%, 0.6%, 7.4%, and 3.7%, respectively. The selling prices of second-hand residential properties in second- and third-tier cities decreased by 6.5% and 7.4% YoY, with the declines narrowing by 0.5 and 0.4 percentage points, respectively. 》Click for details [Beijing Releases 2025 Annual Housing Development Plan] Recently, the Beijing Municipal Commission of Housing and Urban-Rural Development released the "2025 Beijing Annual Housing Development Plan," which clarifies the annual goals and key tasks for housing development. The plan proposes specific tasks, action plans, and work measures around eight aspects, including optimizing housing land supply, supporting reasonable housing demand, and strengthening housing security, to consolidate the real estate market's stable trend, promote high-quality housing development, and achieve higher levels of housing for all. The plan proposes to optimize housing land supply. Adhering to the principle of supply based on demand, it arranges 240 to 300 hectares of land for commercial housing, prioritizing development in areas with relatively complete facilities such as around rail transit stations, to create vibrant centers for work, living, and commerce. It also coordinates the supply of various types of affordable housing land, totaling 475 hectares. [Xinyang, Henan Officially Announces Pre-sale Reform: Industry Insiders Say It May Be Implemented Gradually] On May 13, the Xinyang Municipal Bureau of Housing and Urban-Rural Development released the "Several Measures on Strengthening the Management of Pre-sale Commercial Housing," which mentioned the implementation of pre-sale reform in the central urban area based on the principle of "differentiating between new and old projects." Projects that obtain construction permits after the issuance of the document must reach the main structure's topping-out before applying for pre-sale permits; for newly auctioned land after the document's issuance, pre-sale is no longer allowed. Guojin Securities stated that pre-sale reform means delayed capital recovery, and the accompanying policies, especially financing policies, are not yet clear, which will increase the financial pressure on enterprises in the short term. At the same time, it will raise the threshold for developers to acquire land, increase the difficulty of land auctions, and further increase local fiscal pressure. In the short term, it may be implemented gradually under the framework of "city-specific policies." [Shenzhen's Second-hand Housing Transactions Show Post-Holiday Recovery, Up 107% WoW] According to statistics from the Shenzhen Real Estate Intermediary Association, in the 19th week of 2025, the city recorded 1,407 second-hand housing transactions (including self-service), up 106.6% WoW. The association believes that the weekly transaction volume of second-hand housing was affected by the Labour Day holiday, showing fluctuations in the past two weeks, and the current transaction volume has returned to normal levels. According to statistics on the number of second-hand housing units publicly available for sale, as of May 12, 2025, there were 71,832 valid second-hand housing units for sale in the city, a decrease of 499 units WoW. (Caijing) [PBOC: Expand the Scope of Use for Affordable Housing Refinancing to Continuously Consolidate the Stable Trend of the Real Estate Market] On May 9, the People's Bank of China (PBOC) released the Implementation Report on China's Monetary Policy for the First Quarter of 2025. In the next phase, it will accelerate the establishment and improvement of the pension finance system to support China's pension cause. It will support the boosting and expansion of consumption, guiding financial institutions to actively meet the diversified funding needs of various entities from both the supply and demand sides of consumption. It will expand the scope of use for affordable housing refinancing, continuously consolidate the stable trend of the real estate market, improve the basic real estate finance system, and help build a new model for real estate development. [Pan Gongsheng, Li Yunze, and Wu Qing Make Major Statements! Covering RRR Cuts, Interest Rate Cuts, the Stock Market, the Real Estate Market, and More...] At 9 a.m. on May 7, the State Council Information Office will hold a press conference, inviting the heads of the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission to introduce the situation regarding the "package of financial policies to support market stability and expectations". PBOC Governor Pan Gongsheng, National Financial Regulatory Administration Director Li Yunze, and CSRC Chairman Wu Qing will attend the conference. The PBOC announced that, starting from May 8, it will cut the interest rate on 7-day reverse repo operations in the open market by 0.1 percentage point. Starting from May 15, it will cut the reserve requirement ratio (RRR) for financial institutions by 0.5 percentage point. Starting from May 8, it will cut the interest rate on individual housing provident fund loans by 0.25 percentage point. It will cut the RRR for auto finance companies and financial leasing companies by 5 percentage points. Starting from May 7, it will cut the refinancing rate by 0.25 percentage point. Starting from May 8, it will cut the standing lending facility rate by 10 basis points. It has decided to increase the quota for refinancing to support agriculture and small businesses by 300 billion yuan and increase the quota for refinancing to support technological innovation and technological transformation by 300 billion yuan. Li Yunze stated that eight incremental policies have recently been introduced, including accelerating the introduction of a series of financing systems compatible with the new model for real estate development, further expanding the scope of pilot programs for long-term investment by insurance funds to introduce more incremental funds into the market, adjusting and optimizing regulatory rules, reducing the risk factor for insurance companies' stock investments to support a stable and active capital market, promptly introducing a package of policies to support financing for small and micro enterprises and private enterprises, formulating a series of policy measures for the banking and insurance industries to safeguard the development of foreign trade, providing precise services to market entities significantly affected by tariffs, revising the management measures for merger and acquisition loans, increasing investment in science and technology innovation enterprises, and formulating opinions on the high-quality development of technology insurance. Wu Qing, Chairman of the China Securities Regulatory Commission, stated at a press conference held by the State Council Information Office that every effort would be made to consolidate the momentum of market stabilization and improvement, dynamically improve work plans to address various external risk attacks, and fully support the role of Central Huijin Investment Ltd. as a quasi-stabilization fund. 》Click to view details [Zhuhai: Encourages "trade-in" for housing, with a maximum subsidy amount of no more than 30,000 yuan per unit] Zhuhai recently issued the "Several Measures to Promote High-Quality Development of the Real Estate Market in Zhuhai City," which proposes encouraging "trade-in" for housing. Residents participating in the "trade-in" program for housing will receive a special housing purchase subsidy of 1% of the online contract price of the newly purchased home, with a maximum subsidy amount per unit not exceeding 30,000 yuan. The subsidy policy is valid for one year. A unified platform for "trade-in" housing will be established, synchronously linked with the government's online approval process, enabling "one-stop" online handling of business transaction procedures. The cross-bank handling of "transfer with mortgage" transactions will be vigorously promoted. For taxpayers who sell their own homes in Zhuhai and repurchase a home in the city within one year, the individual income tax paid when selling their own home will be refunded in accordance with national policies. [Wuhan: Families with two or three children purchasing newly built commercial housing within the city will receive housing purchase subsidies of 60,000 yuan and 120,000 yuan, respectively] The Wuhan Housing and Urban Renewal Bureau and other departments issued a notice on continuously consolidating the stable situation of the real estate market, optimizing housing loan services for young people. Commercial banks are encouraged to provide specialized housing loan financial products and diversified repayment methods for young people working and starting businesses in Wuhan. The housing provident fund loan policy will be optimized. The maximum loan amount for the second personal housing provident fund loan will be increased to be consistent with that for the first home. Support for employees who transition from renting to purchasing will be strengthened, allowing the amount withdrawn for rent to be included in the calculation of the loan amount based on the deposit balance. The "trade-in" acquisition efforts will be increased. State-owned enterprises and various market entities are encouraged to acquire individual second-hand homes to promote the "trade-in" program. Active efforts will be made to carry out cross-district "trade-in" for housing, with the city planning to acquire 3,000 individual second-hand homes for various types of rental housing and resettlement housing. Support for improved housing purchase needs will be continuously provided. Before December 31, 2025, families that sell their own homes within this year and purchase newly built commercial housing within six months, or purchase newly built commercial housing and sell their original own homes within 12 months, will receive a full subsidy from the district where the newly purchased home is located based on the actual amount of deed tax paid. The scope of housing purchase support for families with multiple children will be expanded. From May 1 to December 31, 2025, families with two or three children that comply with the national family planning policy and purchase newly built commercial housing within the city will receive housing purchase subsidies of 60,000 yuan and 120,000 yuan, respectively. Support for the purchase of commercial and office properties will be increased. From May 1 to December 31, 2025, individuals purchasing newly built commercial and office residential properties for non-business purposes will receive a 50% subsidy based on the actual amount of deed tax paid. The minimum down payment ratio for commercial loans will be reduced from 50% to 45%, and the loan interest rates will be independently determined by commercial banks based on relevant principles of loan risk management. Voices from All Sides A research report by Sinolink Securities points out that the early-stage monetary policy is expected to alleviate the pressure on the liability side for both residents and enterprises simultaneously, which will drive the transaction of commercial residential properties and the implementation of newly commenced projects. Considering that fiscal funds are clearly identified as the main source of support for urban renewal, it is expected that the implementation speed will accelerate in the future. Developers are recommended to prioritize key layouts in first-tier and core second-tier cities, focusing on improved products, and possess the ability to continuously acquire land. Real estate agencies are recommended to benefit from the continuous implementation of favorable policies, the increased activity in both the primary and secondary housing markets, and to have core competitive advantages in intermediary platforms and property and commercial management. A research report by Kaiyuan Securities points out that the General Office of the CPC Central Committee and the General Office of the State Council recently issued the "Opinions on Continuously Promoting Urban Renewal Actions," proposing that by 2030, significant progress should be made in the implementation of urban renewal actions, the institutional mechanisms for urban renewal should be continuously improved, and initial results should be achieved in the transformation of urban development and construction methods. Hangzhou has witnessed the transfer of three residential plots involving residential land in Qiantang District, with a total land transfer area of 155,058 m², a total planned construction area of 314,743.9 m², and a total starting price of 2.573 billion yuan. Ultimately, all three plots were sold at the base price, generating a total of 2.573 billion yuan. Sales in the first four months of 2025 have initially stabilized, and the April Political Bureau meeting proposed to "continuously consolidate the stable trend of the real estate market," affirming the effectiveness of real estate regulatory policies. It is expected that subsequent policies targeting the real estate sector will remain positive and mild, with more active fiscal and monetary policies expected to be introduced to support the steady development of the industry. Under active fiscal policies and moderately loose monetary policies, the acquisition and storage of existing properties and the renovation of urban villages are expected to accelerate, improving the existing housing supply-demand relationship, speeding up the process of halting declines and stabilizing the market, and maintaining an "overweight" rating for the industry. A research report by China Galaxy Securities states that on May 7, the State Council Information Office held a press conference on "a package of financial policies to support market stability and stabilize expectations," which mentioned "reducing the interest rate on personal housing provident fund loans by 0.25 percentage points" and introduced that a series of financing systems compatible with the new model of real estate development will be accelerated to help continuously consolidate the stable trend of the real estate market. This reduction in loan interest rates related to home purchases, along with the mention of introducing incremental financing support policies, covers aspects such as real estate development, personal housing, and urban renewal. The research report suggests that with the continuous promotion of policies, the threshold for home purchases by residents is expected to decrease, and the rigid and improvement-oriented housing demands of residents are expected to receive further support. With the backing of policies, the allocation value of the real estate sector stands out. The report believes that leading real estate enterprises demonstrate excellent operational management capabilities and financial advantages, and their market share is expected to rise further. The research report of Wanlian Securities states: China's real estate market still has significant room for development. Since the Political Bureau meeting in September last year, the sales end of commercial housing has shown signs of stabilizing after a decline. The recent reduction in the interest rate for housing provident fund loans will further open up room for adjustments in the interest rates for individual housing commercial loans, reducing home purchase costs. Meanwhile, this package of monetary policies will further boost market confidence and improve residents' income expectations. Wanlian Securities expects that subsequent policy measures will remain continuously accommodative, with relevant optimization policies being continuously introduced to consolidate the stable trend of the real estate market. Currently, there is considerable uncertainty in overseas market demand. Against the backdrop of greater efforts to promote consumption, expand domestic demand, and strengthen the domestic economic cycle, promoting housing consumption will be a key focus. It is expected that policies such as urban renewal will continue to be optimized and accelerated in implementation, and more incremental policies are still worth anticipating. The real estate industry is expected to maintain a stable trend with the continuous support of policies. For more information on the fundamentals, policies, and future trends of domestic infrastructure and real estate, please participate in the 2025 SMM (3rd) Wire and Cable Industry Development Conference & Wire and Cable Industry Exhibition .

Against the backdrop of profound adjustments in the real estate market, local housing policies have witnessed significant breakthroughs. Recently, Xinyang City in Henan Province has introduced measures to fully implement the sale of completed residential properties for newly transferred land developments. Analysts have noted that Xinyang has become the first city in the country to implement this model this year. "This measure in Xinyang not only boosts the confidence of homebuyers but also attempts to drive the industry towards a new model by reshaping sales rules," a real estate analyst pointed out. "The sale of completed residential properties can significantly reduce the potential delivery risks borne by homebuyers, safeguard residents' rights and interests, and optimize the industry ecosystem. In the long run, it is conducive to promoting the stable and healthy development of the housing market and accelerating the construction of a new model for real estate development," said Xu Changjie, an analyst at Huachuang Securities. Why did Xinyang fire the "first shot" for the sale of completed residential properties this year? According to the public announcement on the official website of the Xinyang Housing and Urban-Rural Development Bureau, in order to continuously promote the stabilization of the real estate market, effectively manage market-oriented risks in the real estate sector, destocking, and control incremental supply, the Xinyang Housing and Urban-Rural Development Bureau has drafted the "Several Measures on Strengthening the Management of Pre-sale of Commercial Housing (Trial)," which is now open for public consultation. The public consultation period for these measures is from May 6, 2025, to May 15, 2025. The aforementioned document outlines six measures. The first measure, "Strictly Control Pre-sale Permit Conditions," states that "for commercial housing developments on newly transferred land after the issuance of this document, the sale of completed residential properties shall be uniformly implemented." Meanwhile, the document clarifies that the time of newly transferred land shall be based on the signing date of the land transfer contract. "This measure shall be implemented from the date of issuance and shall apply to the central urban area. Other counties may refer to and implement it accordingly." "Xinyang's explicit announcement to implement the sale of completed residential properties for newly transferred plots in the central urban area is the first city nationwide to clearly and comprehensively implement this model recently," said Chen Wenjing, Director of Policy Research at the China Index Academy. Regarding why Xinyang has chosen to fully implement the sale of completed residential properties for newly transferred plots in the central urban area, Yan Yuejin, Deputy Dean of the E-House China Research Institute, believes that Henan faced challenges with the delivery of pre-sale properties in 2022, with many cases emerging in cities like Xinyang. Therefore, Xinyang's move to "uniformly implement the sale of completed residential properties for newly transferred land" is essentially based on the new situation to mitigate risks associated with the pre-sale model. "Under the pre-sale model, issues such as developers' high-leverage expansion and misappropriation of funds may lead to project stalls, severely damaging the rights and interests of homebuyers. Xinyang's measures, with the core objectives of 'mitigating risks, destocking, and controlling incremental supply,' aim to cut off the risk transmission chain of pre-sale properties at the source by strictly controlling pre-sale conditions for newly transferred land. This is regarded by the industry as a crucial step in mitigating systemic risks."The industry analyst mentioned above stated. The analyst pointed out that the Xinyang market is still in the adjustment phase, with significant pressure on inventory reduction. Currently, many new housing projects are already in the state of selling completed properties, and the overall impact of the new policy on the short-term market operation in Xinyang is relatively small. Yan Jinjin believes that the completed property sales model mentioned in Xinyang this time will have a more direct impact on developers. Real estate companies need to objectively evaluate and better grasp the cost-effectiveness and financial calculations when acquiring land. It should be noted that the promotion of completed property sales in Xinyang this time is only targeted at newly transferred land, while land transferred before the issuance of the previous document will still be executed according to the original rules. Can the completed property sales model be fully implemented? Recently, the completed property sales model has received significant attention from the market. Multiple insiders told reporters that some high-energy cities are also studying methods to pilot completed property sales on newly transferred land. Before this, many regions across the country actively explored and promoted completed property sales. Chen Wenjing introduced that in Hainan, commercial residential buildings constructed on land transferred after March 2020 have all implemented completed property sales, which has been in place for over five years, making it the first province to implement completed property sales. According to incomplete monitoring by the China Index Academy, since the end of 2022, over 30 provinces (cities) across the country have issued policies related to completed property sales. For example, Hefei, Zhengzhou, and Changsha have clearly designated some projects for completed property sales pilots; Jingmen is the only city in Hubei Province to pilot completed property sales. In April this year, one of the city's first batch of pilot projects entered the market, with all shops sold out and over 80% of residential units signed, while another project is nearing completion with a subscription rate of nearly 90%. In addition, many regions have introduced supporting policies for completed property sales. For example, several districts and counties in Ganzhou have extended the payment period for land transfer fees for completed property sales projects, several districts and counties in Jiujiang have provided deed tax subsidies for buyers of completed property sales projects, and multiple regions in Shandong have increased the provident fund loan limits for purchasing completed properties. "From a long-term perspective, the completed property sales model is continuously advancing, and the trend cannot be ignored." Chi Tianhui, an analyst at Guojin Securities, believes that the real estate market has continued to decline in recent years, and after the small spring this year, real estate data has weakened again. The continuous bottoming of housing prices and the wait-and-see sentiment towards pre-sale properties (concerns about poor quality, rights protection, and unfinished projects) have constrained the release of demand, diverting a large amount of demand to the second-hand housing market. He further stated that under the framework of the new development model for real estate, commercial housing needs to be fully marketized, advocating for what you see is what you get, and determining success by quality, thereby promoting industry transformation and upgrading and rebuilding the trust of homebuyers. "From the perspective of residents, the sale of completed homes helps avoid project stagnation, reduces disputes arising from false advertising or information asymmetry, and lowers the cost of safeguarding rights. At the same time, residents do not need to make large upfront payments for completed homes while waiting for delivery, effectively reducing their financial pressure," said Xu Changjie. From the perspective of industry development, he believes that the sale of completed homes will facilitate the industry's further transition towards being "product-driven," compelling real estate enterprises to prioritize the construction of "high-quality homes." It also reduces their reliance on pre-sale funds, curbs excessive expansion driven by high leverage, and mitigates systemic financial risks. However, several analysts have pointed out that the sale of completed homes may also bring about other impacts, necessitating the implementation of supporting policies in pilot regions to offset these effects. It is anticipated that a comprehensive rollout will not occur in the short term. In Chen Wenjing's view, under the model of completed home sales, there are still several issues that need to be addressed. Firstly, as the sales time node for completed homes is later than that for pre-sale homes, the sales payment collection cycle for real estate enterprises will be longer, posing a financial challenge for them. Secondly, the sale of completed homes will, to a certain extent, affect the scale of new home supply. For regions with relatively small housing inventories, local governments need to exercise precise control over the pace and intensity of implementation. Thirdly, the sale of completed homes will also increase the capital requirements for financial institutions. "From a market perspective, it is recommended to prioritize pilot implementation of completed home sales in cities or regions with large housing inventories, while accelerating the improvement of real estate financing systems suitable for the completed home sales model, in order to gradually achieve a transition from pre-sale to completed home sales," said Chen Wenjing.

["[Shanghai's Real Estate Market Delivers on 'Silver April']", "Shanghai's real estate market delivered on 'Silver April'. In April, driven by high-end improvement projects, the new home market in Shanghai exhibited a pattern of 'low opening, high closing', with transaction volume remaining flat compared to the same period last year. Meanwhile, the second-hand housing market has maintained a level above the '50 mark' for seven consecutive months, signaling a bottoming out in both transaction volume and prices."]

SMM News on May 7: On May 7, influenced by positive news such as the "one bank, one bureau, one commission" making significant announcements and the real estate market receiving a package of policy support, the real estate sector opened significantly higher in the morning session, with the real estate development sector once surging over 3%. However, as various positive news came into effect, the gains pulled back somewhat. As of 13:57 on May 7, the real estate development sector was up 1.34%. Among individual stocks, Dasanxiang Impression and Tianbao Infrastructure hit the daily limit, while Xinhualian, Chongqing Development, and Huali Family led the gains. On the news front, on May 7, Pan Gongsheng, Governor of the People's Bank of China (PBOC), stated at a State Council Information Office press conference that the reserve requirement ratio (RRR) would be cut by 0.5 percentage points, expected to provide approximately 1 trillion yuan in long-term liquidity to the market; the policy interest rate would be lowered by 0.1 percentage point, with the 7-day reverse repo operation rate in the open market adjusted from the current 1.5% to 1.4%, expected to drive the Loan Prime Rate (LPR) down by approximately 0.1 percentage point in tandem; the interest rate on personal housing provident fund loans would be reduced by 0.25 percentage point, with the interest rate for first-time homebuyers on loans over five years dropping from 2.85% to 2.6%, and interest rates for other tenors adjusted accordingly; the National Financial Regulatory Administration (NFRA) would introduce eight incremental policies, including improving the financing system for the real estate sector... News Front [Pan Gongsheng, Li Yunze, Wu Qing Make Significant Announcements! Regarding RRR Cuts, Interest Rate Cuts, Stock Market, Real Estate Market...] At 9 a.m. on May 7, the State Council Information Office will hold a press conference, inviting heads of the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission to introduce the "package of financial policies to stabilize the market and expectations". PBOC Governor Pan Gongsheng, NFRA Director Li Yunze, and CSRC Chairman Wu Qing will attend the conference. The PBOC announced that starting from May 8, the 7-day reverse repo operation rate in the open market would be lowered by 0.1 percentage point. Starting from May 15, the RRR for financial institutions would be cut by 0.5 percentage point. Starting from May 8, the interest rate on personal housing provident fund loans would be reduced by 0.25 percentage point. The RRR for auto finance companies and financial leasing companies would be cut by 5 percentage points. Starting from May 7, the rediscount rate would be lowered by 0.25 percentage point. Starting from May 8, the standing lending facility rate would be lowered by 10 basis points. It was decided to increase the quota for re-lending to support agriculture and small businesses by 300 billion yuan. It was also decided to increase the quota for re-lending to support technological innovation and technological transformation by 300 billion yuan. Li Yunze stated that eight incremental policies would be introduced recently, including accelerating the introduction of a series of financing systems compatible with the new model of real estate development, further expanding the scope of pilot programs for long-term investment by insurance funds to introduce more incremental funds into the market, adjusting and optimizing regulatory rules, reducing the risk factor for insurance companies' stock investments to support a stable and active capital market, promptly introducing a package of policies to support financing for small and micro enterprises and private enterprises, formulating a series of policy measures for the banking and insurance sectors to support the development of foreign trade, providing precise services to market entities significantly affected by tariffs, revising the management measures for merger and acquisition loans, increasing investment in science and technology innovation enterprises, and formulating opinions on the high-quality development of technology insurance.Wu Qing, Chairman of the China Securities Regulatory Commission, stated at a press conference held by the State Council Information Office that they would make every effort to consolidate the momentum of market stabilization and improvement, dynamically improve work plans to address various external risk attacks, and fully support the role of Central Huijin Investment Ltd. as a quasi-stabilization fund. 》Click to view details 【PBOC: Reduces individual housing provident fund loan interest rates by 0.25 percentage points from May 8】 The People's Bank of China (PBOC) issued a notice regarding the reduction of individual housing provident fund loan interest rates. The PBOC decided that, starting from May 8, 2025, individual housing provident fund loan interest rates would be reduced by 0.25 percentage points. The interest rates for first-home individual housing provident fund loans with terms of 5 years or less (including 5 years) and over 5 years would be adjusted to 2.1% and 2.6%, respectively. The interest rates for second-home individual housing provident fund loans with terms of 5 years or less (including 5 years) and over 5 years would be adjusted to no less than 2.525% and 3.075%, respectively. 【Li Yunze: Accelerates the issuance of loan management measures for real estate development, individual housing, and urban renewal】 Li Yunze, Director of the National Financial Regulatory Administration, stated at a press conference held by the State Council Information Office that, as of now, the approved loan amount for the real estate "white list" had increased to 6.7 trillion yuan. The balance of real estate loans in Q1 increased by more than 750 billion yuan, with new individual housing loans achieving the largest single-quarter increase since 2022. Housing rental loans in Q1 increased by 28% YoY. Li Yunze stated that they would accelerate the issuance of loan management measures for real estate development, individual housing, and urban renewal. (Financial News) 【Zhuhai: Encourages "trade-in" of housing, with a maximum subsidy amount of no more than 30,000 yuan per unit】 Zhuhai recently issued "Several Measures to Promote High-Quality Development of the Real Estate Market in Zhuhai City," which proposes encouraging the "trade-in" of housing. Residents participating in the "trade-in" of housing will be given a special housing purchase subsidy of 1% of the online contract price of the newly purchased housing, with a maximum subsidy amount of no more than 30,000 yuan per unit. The subsidy policy is valid for one year. A unified platform for the "trade-in" of housing will be established, synchronously linked with the government's online approval process, to achieve online "one-stop" handling of business transaction procedures. The cross-bank handling of "transfer with mortgage" business will be vigorously promoted. Taxpayers who sell their own housing in Zhuhai City and repurchase housing within the city within one year will be refunded the individual income tax they paid when selling their own housing in accordance with national policies. 【Shanghai's property market continues to improve during the Labour Day holiday, with trading volume up 36% YoY】 It was learned from the Shanghai Housing Management Bureau that during this year's Labour Day holiday, Shanghai's property market continued to show signs of stabilization and improvement, with trading volume for both new and second-hand housing up 36% YoY.In the primary housing market, statistics from the Shanghai Housing Authority show that during the Labour Day holiday, the trading volume of new homes in Shanghai increased YoY, with a 12% YoY rise in trading volume over the five-day holiday. [CRIC: Q1 Real Estate Market Stabilizes, Second-hand Housing Market in Beijing, Shanghai, Shenzhen, and Hangzhou Sees 17% YoY Increase in Trading Volume] CRIC Real Estate reported that in Q1 , the real estate market stabilized, with the second-hand housing market in Beijing, Shanghai, Shenzhen, and Hangzhou experiencing increased volume and stable prices, a 17% YoY increase in trading volume, a recovery in demand for high-end and luxury properties, and a halt in price declines for affordable housing. As a leading indicator for the new housing market, the second-hand housing market promotes market expectation recovery and accelerates overall market stabilization. The second-hand housing market, as a "barometer" for the new housing market, on one hand, has leading indicator characteristics and is more sensitive to policies; on the other hand, the stabilization of second-hand housing prices also helps stabilize expectations for the new housing market. [April Land Auction Remains Hot: Developers Bet on Core Cities, Average Premium Rate for Residential Land in 22 Cities Rises to 28%] In the land market in April, Hangzhou performed remarkably, with multiple plots achieving premium rates exceeding 50%. Not only Hangzhou, but also Nanjing, Suzhou, Chongqing, and Chengdu saw high-premium transactions for residential land. Overall, the land auction heat in key cities continued in April. Data from the China Index Academy shows that from April 1 to 22, the average premium rate for residential land in 22 key cities was 28%, the highest since October 2023. According to data from the Shanghai E-House Real Estate Research Institute, as of April 27, the premium rate for residential land in 25 key cities nationwide in the first four months of this year was 19%, an increase of 13 percentage points compared to the 6% premium rate for the entire last year. [January-April Land Acquisition by Key Developers Increases 26.6% YoY] The China Index Academy recently released the "Top 100 National Real Estate Enterprises Land Acquisition Ranking for January-April 2025," showing that the total land acquisition by the top 100 enterprises in January-April 2025 was 360.8 billion yuan, a 26.6% YoY increase, with the growth rate decreasing by 4.0 percentage points MoM. The land auction heat in hot cities continued in April, with the land transfer revenue for residential land in 22 cities in January-April 2025 increasing by over 40% YoY. This growth reflects both the fierce competition among developers for high-quality plots and the value of land in core regions. In terms of new value, Greentown China, China Jinmao, and Poly Development ranked in the top three. [Multiple Real Estate Projects Launch Before the Holiday, Real Estate Also Celebrates "Labour Day"] Real estate projects in Guangzhou and Changsha are fully preparing for the "Labour Day," with dozens of projects choosing to launch before the holiday; Shenzhen has launched the "Labour Day New Home Festival"; the property market in Nanchang announced it will remain open during the holiday; Chongqing has chosen to offer 20,000 discounted units before the holiday.Why are property markets across the country vying to make the most of the "Labour Day holiday"? Firstly, the signals of a market upturn are becoming increasingly evident. Secondly, all parties have formed new judgments on "stabilizing the property market". Thirdly, the industry is taking action to consolidate the hard-won positive momentum. Therefore, it's not just this Labour Day holiday that will be busy for the property market. It is believed that after the Labour Day holiday, regions will continue to be busy exploring ways to further unleash demand and improve supply, implementing city-specific policies to activate market vitality. (CCTV News) [Wuhan: Families with two or three children purchasing newly-built commercial housing across the city will receive housing purchase subsidies of 60,000 yuan and 120,000 yuan, respectively] The Wuhan Housing and Urban Renewal Bureau and multiple other departments issued a notice on continuously consolidating the stable momentum of the real estate market, optimizing housing loan services for young people. Commercial banks are encouraged to provide specialized housing loan financial products and diversified repayment methods for young people working or starting businesses in Wuhan. The housing provident fund loan policy is optimized. The maximum loan amount for the second personal housing provident fund loan is increased to be consistent with that for the first home loan. Support for employees who transition from renting to purchasing is enhanced, allowing the rental extraction amount to be incorporated into the deposit balance for calculating the loan amount. The acquisition efforts for "trade-in" are increased. State-owned enterprises and various market entities are encouraged to acquire individual second-hand homes to promote the "trade-in" initiative. Active efforts are made to carry out cross-district "trade-in" for housing, with the city planning to acquire 3,000 individual second-hand homes for various rental housing and resettlement housing purposes. Support for upgrading housing purchase needs is continuously provided. Before December 31, 2025, families that sell their self-owned homes within the year and purchase newly-built commercial housing within six months, or purchase newly-built commercial housing and then sell their original self-owned homes within 12 months, will receive a full subsidy for the newly-purchased commercial housing from the district where it is located, based on the actual amount of deed tax paid. The scope of housing purchase support for families with multiple children is expanded. From May 1 to December 31, 2025, families with two or three children who comply with the national family planning policy and purchase newly-built commercial housing across the city will receive housing purchase subsidies of 60,000 yuan and 120,000 yuan, respectively. Support for purchasing commercial and office properties is increased. From May 1 to December 31, 2025, individuals purchasing newly-built commercial and office properties for non-business purposes will receive a 50% subsidy based on the actual amount of deed tax paid. The minimum down payment ratio for commercial loans is reduced from 50% to 45%, and the loan interest rate is determined independently by commercial banks based on relevant principles of loan risk management. [Henan: Strengthen loan disbursements for real estate "white list" projects and expand the scale of acquiring existing commercial housing] The General Office of the People's Government of Henan Province issued "Several Policy Measures for Striving in Q2 to Ensure 'Achieving Half of the Annual Targets'", which mentions strengthening loan disbursements for real estate "white list" projects and expanding the scale of acquiring existing commercial housing, with the goal of basically completing the delivery of projects to ensure housing delivery by the end of June 2025.Elderly households purchasing products for home renovations to suit the needs of the elderly will receive subsidies amounting to 30% of the total cost of such products, with a maximum subsidy of 12,000 yuan per household. 【NDRC: Measures to foster a stable and favorable environment for development will primarily involve maintaining stability and vitality in the capital market, and sustaining the stable trajectory of the real estate market】 Zhao Chenxin, Deputy Director of the National Development and Reform Commission (NDRC), introduced at a press conference held by the State Council Information Office on April 28 that measures to stabilize employment, the economy, and promote high-quality development encompass five key areas. Among these, fostering a stable and favorable environment for development primarily includes measures such as maintaining stability and vitality in the capital market, sustaining the stable trajectory of the real estate market, and increasing financial support for the real economy. Various Perspectives A research report by Huatai Securities points out that as we enter Q2, the window for incremental policies in the real estate sector is gradually opening. Given the more proactive macroeconomic and fiscal policy orientations, attention should be paid to the pace of implementing practical policies. Looking ahead, considering the greater policy flexibility in first-tier cities, there is greater optimism about the recovery pace of core cities represented by first-tier cities, as well as the valuation recovery of real estate enterprises with reserves or newly acquired resources in corresponding regions. SPDB International notes that measures such as RRR cuts and interest rate cuts by the PBOC, as well as reductions in housing provident fund loan interest rates, are in line with previous expectations. The simultaneous announcement of these measures underscores the government's determination to stabilize growth amid the backdrop of tariff wars. Going forward, policies will continue to be implemented to offset the negative impacts of tariff wars on the economy. A research report by China Galaxy Securities states that the recent Political Bureau meeting proposed "sustaining the stable trajectory of the real estate market" and separately mentioned aspects such as urban renewal, new development models, high-grade housing supply, and acquisition of existing housing stock. Galaxy Securities believes that with the strong impetus from policies, residents' rigid and improvement-oriented housing demand is expected to be further released, and support for the acquisition of existing commercial housing is expected to be further enhanced, potentially sustaining the stable trajectory of the real estate market. Galaxy Securities also believes that leading real estate enterprises, demonstrating excellent operational management capabilities and financial advantages, are expected to further increase their market share. The meeting of the Political Bureau of the CPC Central Committee pointed out that efforts should be intensified to implement urban renewal initiatives, and advance the renovation of urban villages and dilapidated houses in a forceful and orderly manner. Accelerate the construction of a new model for real estate development, increase the supply of high-grade housing, optimize policies for the acquisition of existing commercial housing stock, and sustain the stable trajectory of the real estate market. Yan Yuejin, Vice President of the E-House China Research and Development Institute, stated that overall, the policies for the subsequent development of the real estate market are clear. The meeting has provided a clear direction for the subsequent development of the real estate market, particularly for Q2, and has put forward specific requirements in areas such as risk prevention, optimizing existing stock, and optimizing supply, which are of great significance for promoting the stable and healthy development of the real estate market. (Cailian Press) For more information on the fundamentals, policies, and future trends of the real estate sector, please join us at the 2025 SMM (3rd) Wire & Cable Industry Development Conference and Wire & Cable Industry Exhibition .