Mainland property stocks continued their recent upward trend. As of writing, Longfor Group (00960) rose 4.27% to HK$9.04. R&F Properties (02777) gained 4.17% to HK$0.375. China Resources Land (01109) increased by 2.65% to HK$36.44. Yuexiu Property (00123) advanced 2.07% to HK$4.43.

The positive movement coincides with the recent Labor Day holiday period, during which multiple cities implemented new property market policies. This, combined with steadily recovering market confidence, led to a sustained rise in real estate market activity. During the holiday, both new and existing home inquiries and transaction volumes showed significant increases in many regions.

Data indicates that in the first four days of the holiday, Beijing's existing home transactions increased by 72% compared to the same period last year. In April, the cumulative online signing volume for existing homes in Shanghai reached 28,742 units, marking the highest level for the same period in nearly a decade.

Ping An Securities noted that while the recovery in the property market may experience fluctuations, and even if short-term rebounds occur in individual cities, it takes time for capital markets to confirm and form a consensus. However, leading developers currently have market capitalizations below 80 billion yuan. With annual report risks being released and low market expectations for a property rebound, the downside risk is considered limited. Recent policy introductions across various regions and year-on-year growth of 7.6% and 8.5% in primary and secondary market transactions in ten major cities for April indicate continuous positive marginal changes for the sector. Once a consensus forms regarding an inflection point in the market, significant upward potential exists.