China Securities Co., Ltd.: Real estate investment and construction completion still under pressure in August, first-tier city regulation provides some support to the market.

China Securities Co., Ltd. released a research report stating that in August, the national commodity housing sales area decreased by 10.6% year-on-year, an increase of 2.8 percentage points from July; investment and completion of construction continue to be under pressure, with the year-on-year decrease in the investment amount, newly started area, and completed area of real estate development in August all around 20%. First-tier cities successively implemented policies, with Beijing, Shanghai, and Shenzhen optimizing control policies such as purchase restrictions and mortgage interest rates from August to September, providing some support to market demand. The latest data shows that as of September 12th, the sales area of new houses in 38 cities increased by 2% year-on-year, achieving a positive growth rate. The company is optimistic about high-quality commercial real estate companies and developers and property management companies in core cities. Key points from China Securities Co., Ltd. are as follows: The statistics bureau announced the operation of the real estate market in August 2025, with the monthly sales area, investment amount, newly started area, and completed area of real estate in August at 57.44 million square meters, 692.9 billion yuan, 45.95 million square meters, and 26.6 million square meters, respectively. The year-on-year growth rates were -10.6%, -19.5%, -20.3%, and -21.4%, respectively, compared to -7.8%, -17.0%, -15.4%, and -29.4% in the previous period. The sales decline has widened, with first-tier cities introducing policies. In August, the national commodity housing sales area decreased by 10.6% year-on-year, an increase of 2.8 percentage points from July. From August to September, Beijing, Shanghai, and Shenzhen successively implemented new real estate policies to optimize control policies such as purchase restrictions and mortgage interest rates, providing some support to market demand. The latest data shows that as of September 12th, the sales area of new houses in 38 cities increased by 2% year-on-year, achieving positive growth. Investment and construction completion are still under pressure. With sales still facing downward pressure, real estate investment remains under pressure, with the investment amount of real estate development in August decreasing by 19.5% year-on-year, an increase of 2.5 percentage points from July. First-tier cities' land market continues to attract high attention, with a premium rate of 26% in August. The year-on-year decrease in newly started area was 20.3% in August, and in completed area was 21.4%, indicating a significant decrease. The subsequent changes in the growth rate of newly started area depend on sales trends, and the completion rate depends on the progress of building handover work. Optimistic about high-quality commercial real estate companies and developers and property management companies in core cities. Risk warning Sales below expectations; carry-over below expectations; corporate credit repair below expectations.