Shares of mainland Chinese property developers are trading mostly higher. At the time of writing, CHINA OVERSEAS (00688) is up 3.82% to HK$13.58. CHINA VANKE (02202) has gained 3.33% to HK$2.48. CHINA RES LAND (01109) has risen 3.09% to HK$34.68. GREENTOWN CHINA (03900) is up 3.07% to HK$7.39.
Key Drivers Behind the Movement
On July 15th, data released by the National Bureau of Statistics showed several positive developments in the property market during the first half of the year. Home prices in first-tier cities have now risen month-on-month for four consecutive months. The secondary housing market has seen active transactions, while the area of unsold new commercial housing has declined for four months in a row.
At a State Council Information Office press conference, Deputy Director of the National Bureau of Statistics Mao Sheng Yong stated that the transaction area for existing homes is now roughly equivalent to that of new home sales. The total transaction volume for both new and existing homes has achieved positive growth for the past three months.
Analyst Outlook and Commentary
Analysts note that the first half of 2026 is still characterized by a pattern of weak sales recovery and supply contraction within the real estate sector. The continued decline in new home inventories indicates a gradual recovery in market demand, with policies aimed at reducing stock beginning to show their effect. However, investment continues to bottom out at an accelerated pace, financial pressures on developers remain high, and the market's inherent momentum for recovery is still weak.
Looking ahead to the second half of the year, with policies focused on destocking and controlling new supply, combined with a low base effect from the previous year, the trend towards market stabilization is expected to continue.
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