Bocom International has released a research report stating that it continues to anticipate demand in the secondary market will show sustained improvement and outperform the primary market. The bank expects the new home market to remain broadly stable this year, with buyers likely to continue preferring projects from state-owned enterprises. As capital market sentiment improves, some leading private enterprises may seize the opportunity to accelerate their debt restructuring processes.
From a medium- to long-term perspective, the bank maintains a positive outlook on CHINA RES LAND (01109) and Yuexiu Property Company Limited (00123), both rated "Buy". These two companies have demonstrated strong sales performance over the past few years and possess superior execution capabilities in sales.
The report notes that, according to preliminary data from CRIC, total full-caliber sales for the top 100 developers in May reached approximately 309.2 billion yuan, a month-on-month increase of 14.3% from April's 270.6 billion yuan, driven by transaction volumes in core first-tier city projects. For the 20 major listed developers tracked by the bank, May sales increased by 7.5% month-on-month, primarily due to a 4.4% rise in sales area, while the average selling price decreased slightly by 0.3%.
Among the top 10 developers by sales in May, nine were state-owned enterprises, with Poly Developments and Holdings ranking first. According to the National Bureau of Statistics' 70-city new commercial residential property price index, the index fell by 3.5% year-on-year and 0.1% month-on-month in April. The second-hand commercial residential property price index fell by 6.2% year-on-year and 0.2% month-on-month. In first-tier cities, the new and second-hand commercial residential indices rose by 0.1% and 0.4% month-on-month, respectively.
Furthermore, property policies in May continued a supportive and easing trend. The State Council issued the "Urban Renewal '15th Five-Year' Plan," setting quantitative targets and an action plan for urban renewal work over the next five years. Simultaneously, it released the "Implementation Opinions on Providing Basic Public Services in Places of Habitual Residence," offering supporting measures to stabilize the property market in areas such as housing security, public services, and land allocation.