According to the CITIC Securities Research Report, the real estate policy is divided into two main lines. The first is to boost demand, and the second is to control supply. The common goal of both is to resolve oversupply in the real estate market and stabilize the real estate market. We believe it will take time to improve the supply and demand structure at the national level, but core cities are expected to bottom out housing prices this year. As sales of existing homes advance, “internal volume” competition based on turnover is expected to be replaced by healthy competition based on quality. Development companies that focus on core cities, focus on product quality, and asset-light management companies that maintain brand reputation and have excellent service operation capabilities are expected to gain a competitive advantage.

According to the CITIC Securities Research Report, the real estate policy is divided into two main lines. The first is to boost demand, and the second is to control supply. The common goal of both is to resolve oversupply in the real estate market and stabilize the real estate market. We believe it will take time to improve the supply and demand structure at the national level, but core cities are expected to bottom out housing prices this year. As sales of existing homes advance, “internal volume” competition based on turnover is expected to be replaced by healthy competition based on quality. Development companies that focus on core cities, focus on product quality, and asset-light management companies that maintain brand reputation and have excellent service operation capabilities are expected to gain a competitive advantage.