HK Stock Market Move | The stocks of domestic real estate companies continue to decline in the recent period. The decrease in new housing supply in November may partially restrict sales. Morgan Stanley says that attention should be paid to the sustainability of the recovery.

The stocks of domestic real estate companies continued to decline recently. As of the time of writing, RONSHINECHINA (03301) fell by 6.78% to HK$0.55, SEAZEN (01030) fell by 3.52% to HK$2.19, SUNAC (01918) fell by 2.8% to HK$2.78, and R&F PROPERTIES (02777) fell by 1.657% to HK$1.77. Sinolink pointed out that with November entering the traditional off-peak season, the enthusiasm of real estate companies to launch new projects has steadily decreased. According to research data from Centaline Property, it is estimated that the supply of newly constructed residential properties in 28 key cities in November will be 6.2 million square meters, representing a decrease of 9% month-on-month and 52% year-on-year. The firm believes that with the weakening of policy stimulus effects, the decrease in new property supply, and reduced marketing activities by real estate companies, there may be certain constraints on the rise in November's new property sales. A research report by Morgan Stanley mentioned that second-hand housing prices in mainland China slightly increased month-on-month in October, mainly due to policy relaxation and seasonal factors. They believe that the decrease in new property launches and recent positive sales growth may sustain support for fourth-quarter property prices, but sustainability should be noted as policy effects weaken. The firm pointed out that with the rise in investor confidence and industry valuations rebounding to historical average levels, the key to maintaining good performance lies in sustained sales figures.