Hong Kong-listed mainland property stocks extended their recent decline. As of the latest update, RADIANCE HLDGS (09993) fell 13.11% to HK$1.79; CH OVS G OCEANS (00081) dropped 3.17% to HK$2.75; R&F PROPERTIES (02777) decreased 2.7% to HK$0.36.
Recent data from the National Bureau of Statistics indicates that key indicators for the property sector, including new home sales and construction starts/completions, remain under pressure. In April, the year-over-year declines in sales area, development investment, and construction starts widened compared to the full-year figures from the previous year. The declines in sales value and completed area, however, showed some narrowing.
Transaction performance for both new and existing homes continued to adjust. In April, second-hand home prices in Beijing, Shanghai, Guangzhou, and Shenzhen saw a month-over-month increase, with Shanghai leading the rise with a 0.7% gain.
A research report noted that the real estate sector continued its adjustment this week, declining 3.69%. The current market focus remains on fundamentals. Coupled with the sector's accumulated gains since April, some investors are questioning the sustainability of the stabilization in the first-tier property market and may be choosing to take profits. In the short term, the sector is expected to enter a new observation window for fundamentals. In the absence of new catalysts, it is anticipated that the sector will primarily experience volatility. From a medium-term perspective, the presence of market divergence suggests that expectation gaps still exist. Once a consensus forms on a turning point in the property market, the sector is expected to retain significant upward potential.
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