Chinese property stocks have extended their losses in Hong Kong trading. At the time of writing, SEAZEN (01030.HK) shares fell 5% to HK$1.33, SUNAC (01918.HK) dropped 4.84% to HK$0.59, and CHINA JINMAO (00817.HK) declined 2.19% to HK$1.34.

The downward movement follows data showing a worsening sales decline for China's top 100 property developers in June. For the month, their total contracted sales value fell 12.1% year-on-year, a significant deterioration from the 2.5% drop recorded in May.

For the first half of the year, the combined sales of these developers amounted to 1.49 trillion yuan, representing a 16.0% year-on-year decrease, though this marks a slight improvement from the 17.1% decline seen in the prior period.

Analyst Perspectives on the Sector Outlook

Analysts have offered their views on the current state of the property market. One major securities firm noted that the sector is experiencing a natural downturn following a brief seasonal uptick earlier in the year. However, given the extended period and magnitude of the decline already witnessed, they believe the market adjustment may be entering its later stages. The primary characteristics of this phase are expected to be a narrowing of the overall decline and increased performance divergence among individual companies.

A separate financial institution reiterated its stance, suggesting that high-quality mainland and Hong Kong-listed property developers may have been oversold. They argue that from a medium-term investment horizon, these stocks now present attractive value for portfolio allocation.