A-share property sector surges for second straight day, net inflow of over 4 billion yuan

On September 21, the A-share real estate sector saw a collective surge, with the industry index rising as much as 4.2% intraday and closing 3.95% higher, marking a second consecutive day of strong gains. Eight stocks, including Greenland Holdings, Huafa Industrial, and Vanke A, hit the daily limit up. Over 40 billion yuan in main capital flowed into the real estate sector.

Policy Background

On September 18, the State Council Information Office held a press conference to discuss the high-quality development of the housing and urban-rural construction industry during the "15th Five-Year Plan" period.

Shift to the Second-Hand Housing Era

According to data from the National Bureau of Statistics, the share of second-hand housing transactions has risen from 27% in 2020 to 46% in 2025, and continues to climb this year. In the first eight months, second-hand housing transactions accounted for 52% of total transactions. Zhang Xuetao, Director of the Real Estate Market Regulation Department of the Ministry of Housing and Urban-Rural Development, stated that a proportion exceeding 50% signals that the real estate market has entered an era of existing housing stock.

Expansion of Presale-to-Completed Housing Sales

On August 28, three government departments jointly issued the Notice on Improving the Sales System for Commercial Housing, urging local governments to promote the sale of completed (ready-to-occupy) commercial housing in an orderly manner. Following the new policy, multiple cities including Lishui (Zhejiang), Xiamen (Fujian), and Quanzhou (Fujian) have actively responded by requiring completed housing sales in newly listed land parcels.

Data shows that the share of completed housing sales nationwide has grown from 10.2% in 2020 to 32.4% in 2025. Driven by the new policy, this share is expected to increase further.

Price Trends in Core Cities

In terms of pricing, housing prices in core cities have shown clear signs of stabilization. In first-tier cities, both new commercial and second-hand residential housing prices have achieved month-on-month increases, with year-on-year declines narrowing.

According to the National Bureau of Statistics, in August of this year:

• New commercial housing prices in first-tier cities rose 0.1% month-on-month (flat in July), and fell 0.9% year-on-year, with the decline narrowing by 0.2 percentage points from the previous month.
• Second-hand residential housing prices rose 0.1% month-on-month, and fell 2.7% year-on-year, with the decline narrowing by 1.0 percentage point from the previous month.

Analyst Commentary

A research report from Ping An Securities noted that while the improvement of the commercial housing sales system and supporting policies may have a short-term impact on new housing supply and developers' project turnover and capital recovery, the reduction in new housing supply in the near term—combined with credit policies boosting housing demand—could help developers reduce existing inventory. Additionally, under the completed housing sales model, the absence of delivery concerns and the quality advantages of new homes may expand their premium over second-hand housing, potentially improving overall project profitability.

Industry Financial Performance

According to data from Securities Times · Data Bao, the real estate sector remained in a loss position overall in the first half of the year, with a combined net loss attributable to parent companies of 31.626 billion yuan. However, this represents a reduction of over 6 billion yuan compared to the same period last year, suggesting a potential recovery.

• 14 stocks in the real estate sector achieved year-on-year growth in net profit attributable to parent companies.
• 7 stocks turned from loss to profit.
• 18 stocks narrowed their losses year-on-year.

Institutional Attention

In terms of institutional coverage, 15 stocks in the real estate sector have received ratings from five or more institutions. The top three by number of rating institutions are:

• Poly Developments and Holdings: 26 institutions
• China Merchants Shekou: 23 institutions
• Binjiang Group: 22 institutions

Company Highlights

Poly Developments and Holdings recently released its sales report for August, showing a contracted area of 783,300 square meters and contracted sales of 15.013 billion yuan, both posting slight increases compared to July. In its semi-annual report, the company stated that it seized market windows and recovery opportunities in core cities during the first half of the year, achieving contracted sales of 135.106 billion yuan and a contracted area of 6.3194 million square meters. Although sales value decreased by 6.93% year-on-year, the company's performance outperformed the industry, maintaining the top position in sales value.

China Merchants Shekou reported semi-annual results showing operating revenue of 54.784 billion yuan, a year-on-year increase of 6.41%. In the first half of the year, the company achieved a full-caliber contracted sales area of 3.0518 million square meters and contracted sales of 96.245 billion yuan.

(Source: Securities Times)