Hong Kong stock concept tracking | Guangzhou will purchase existing commercial housing units below 90 square meters citywide as affordable housing. Existing commercial housing purchase and storage work accelerates progress (with concept stocks).

On November 18, Guangzhou Anju Group announced that they will purchase existing commercial housing units below 90 square meters in the entire city as affordable housing. Developers who are interested can sign up from November 18 to December 18. This measure means that the purchase of existing commercial housing units as affordable housing in Guangzhou is officially expanding from areas such as Zengcheng to the entire city. The housing units must meet the following conditions: clear asset and liability relationships and legal status, obtained completion joint acceptance opinions, are below 90 square meters in size, have clear ownership rights, no restrictions such as attachment registration or objection registration, and if there are mortgage restrictions, written consent from relevant parties should be obtained, priority will be given to entire buildings or units that have not been sold and can be managed in a closed manner. To digest existing commercial housing units, optimize the supply of affordable housing, and promote the development of a new model for real estate, more and more cities are conducting the acquisition of existing commercial housing units. Previously, Hangzhou Anju Group issued a notice on the acquisition of completed existing commercial housing units for use as affordable housing, intending to publicly solicit completed existing commercial housing units in certain urban areas and specifying the scope and conditions for the collection of housing units. Harbin Housing and Urban-Rural Development Bureau also issued a notice on October 24 to solicit acquisitions of completed existing commercial housing units for use as affordable housing. Currently, with policy support from the Ministry of Finance and the People's Bank of China, the work of acquiring existing commercial housing units is accelerating. According to statistics from the China Index Research Institute, about 60 cities have expressed support for the acquisition of existing commercial housing units, with over 30 cities issuing detailed collection rules. Experts surveyed generally believe that the work of balancing control of new housing development, optimizing existing stock, and improving quality will help optimize the supply and demand relationship in the real estate market. Open Source Securities released a research report stating that since the end of September, real estate policies have continued to loosen, and monetary and fiscal policies have continued to reduce home buying costs. As a result, sales data in October improved as expected, showing the smallest decline in a month since the 2023 spring, with a significant improvement in sales proceeds among real estate companies. According to Wind data, in the first two weeks of November, the transaction heat for new and second-hand homes in first-tier cities remained high, and the cumulative sales decline for the year continued to narrow. After the full release of policy effects, the sales data in November are expected to be promising. Real estate related industry chain companies: CHINA OVERSEAS (00688), C&D INTL GROUP (01908), YUEXIU PROPERTY (00123), GREENTOWN CHINA (03900), SUNAC (01918), LONGFOR GROUP (00960), SINO-OCEAN GP(03377), CHINA VANKE(02202), CHINA RES LAND(01109), XUHUI HOLDINGS(00884), etc; Property management companies: CHINA RES MIXC(01209), POLY PPT SER(06049), CHINA OVS PPT(02669), MIDEA REAL EST(03990), etc. Real estate agents: BEKE-W(02423), CG SERVICES(06098)