Hong Kong-listed mainland Chinese property stocks continued their downward trajectory.

At the time of writing, SEAZEN (01030.HK) fell 2.88% to HK$1.35, while R&F PROPERTIES (02777.HK) dropped 2.64% to HK$0.221.

Other major developers also saw declines, with C&D INTL GROUP (01908.HK) down 4.39% to HK$12.42 and CHINA RES LAND (01109.HK) falling 3.12% to HK$29.84.

Market Context and Data

The movement follows the release of recent national statistics bureau data. The year-on-year declines in sales area and sales value have narrowed, moving from -13.5% and -20.2% for the first two months to -10.8% and -13.5% for the first five months of the year.

In contrast, the decline in completed real estate development investment widened from -11.1% to -16.2%.

Analyst Perspectives

Analysts note that the narrowing sales decline indicates a gradual demand recovery amid ongoing policy optimization. However, the worsening investment data reflects persistently weak developer sentiment, suggesting a full recovery in industry confidence will take time.

Further commentary points out that the momentum from a surge in demand seen in March has begun to fade. The market is now entering a traditionally slower season, which is expected to exert pressure on both transaction volumes and prices.

Recent high-premium land transactions in cities like Shanghai and Shenzhen have provided some warmth to the land market, primarily driven by developers replenishing their land banks.

The outlook suggests that in the near term, high-quality projects in prime locations of core cities may still find opportunities. For a sustained, long-term recovery, a prerequisite is seen as the stabilization of prices in the secondary housing market first.