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On July 31, data released by China Index Academy showed that from January to July 2024, the total sales of the TOP 100 real estate companies was 2,390.94 billion yuan, a year-on-year decrease of 40.1%. The decline continued to narrow by 1.5 percentage points from the previous month, and the cumulative year-on-year decline has narrowed for five consecutive months.

Data shows that the top ten real estate developers in terms of sales in the first seven months of this year are: Poly Development, China Overseas Land & Investment, Greentown China, Vanke, China Resources Land, China Merchants Shekou, C&D Property, Binjiang Group, Yuexiu Property, and Longfor Group. Overall, from January to July, there were 6 real estate developers with sales exceeding RMB 100 billion, 4 fewer than the same period last year, and 51 real estate developers with sales exceeding RMB 10 billion, 34 fewer than the same period last year. The equity sales of the TOP100 real estate developers was RMB 1,677.12 billion, and the equity sales area was 92.106 million square meters.

In July, the market entered the traditional off-season. According to preliminary statistics from China Index, the sales area of ​​new homes in key cities decreased by about 10% year-on-year. The year-on-year decline was narrower than in the first half of the year due to the low base, but the market still faces adjustment pressure. The price-performance ratio of second-hand homes in core cities has become more prominent after the price decline, which has also diverted the new home market. Second-hand homes continue to "trade volume with price", and the transaction volume of second-hand homes in core cities has decreased slightly month-on-month, while the year-on-year growth rate has expanded. In July alone, the sales of the TOP100 real estate companies decreased by 19.4% year-on-year and 35.2% month-on-month. The main advantages of the projects that drive sales are good supporting facilities, high price-performance ratio and good products.

On July 21, the Third Plenary Session of the 20th CPC Central Committee reviewed and passed the "Decision of the CPC Central Committee on Further Comprehensively Deepening Reform and Promoting China's Modernization", which mentioned: Supporting the diversified housing needs of urban and rural residents. Fully empowering city governments to regulate the real estate market, taking measures based on the city, allowing relevant cities to cancel or reduce housing purchase restrictions, and canceling the standards for ordinary and non-ordinary residential buildings.

China Index Academy believes that, overall, as the impact of the high base of the market weakens in the second half of the year, the year-on-year decline in new home sales is expected to narrow, but the market is still in the bottoming stage. At the same time, combined with the statement of the Third Plenary Session of the 20th CPC Central Committee, there are both short-term policy deployments and long-term reform directions for the real estate market. Among them, the relevant policies to promote the release of demand are expected to be further implemented in the second half of the year. Local governments will gain more autonomy in regulation and control, and implement policies based on the city to promote the stabilization of the real estate market as soon as possible.

In addition, the progress of the implementation of the state-owned enterprise stockpiling policy is also an important factor in determining the pace of market recovery. Real estate companies should focus on policies to stabilize the property market, strengthen promotional activities to reduce inventory, improve sales capabilities, and prepare for the "golden September and silver October".

Text and photos by reporter Xu Weilun