CITIC Securities: Investment in real estate development may have bottomed out and may rebound in the future

A CITIC Securities research report pointed out that the optimization and adjustment of the differentiated housing credit policy is expected to form a synergy with the policy of “Issue loans based on housing ownership” to help residents reduce the burden of purchasing real estate, which is conducive to accelerating the release of reasonable housing demand. This also shows that relative policies are firmly committed to preventing risks and stabilizing growth. The re-pricing of existing mortgage interest rates can reduce the burden on residents and release consumption potential. We estimate that relevant policies may save an annual cost of 12,000 yuan for more than 10 million middle-class families. Currently, with the help of household registration reform, changes in regional development focus, and upgrades in urban renewal ideas, we regard the transformation of urban villages and the entry of new citizens into the city as the core new variable on the demand side. Although investment in real estate development may have bottomed out, it is expected to rebound in the future. The real estate industry chain not only benefits from the stabilization of housing prices in the short term but also benefits from new high-quality urban development trends in the medium and long term. Thus, we are optimistic about the investment value of the real estate industry chain and also believe that the stabilization of real estate prices will help the macro economy maintain a stable and positive trend.