CITIC Securities: Measures to stabilize demand such as optimizing purchase restrictions in first-tier cities and reducing housing costs are expected to be introduced.

CITIC Securities research report stated that, as usual, the December Political Bureau meeting will serve as a prelude to the Central Economic Work Conference, which will then be held to deploy the economic work for 2026. Against the backdrop of simultaneous decline in both volume and price in the real estate market, and significant contraction in investment and land transfer income, the conference is expected to focus on boosting efforts around "stabilizing expectations, stabilizing the market, and preventing risks". Measures to stabilize demand such as optimizing purchase restrictions in first-tier cities and reducing housing costs are expected to be introduced; in the short term, more growth may come from revitalizing existing stock, with policies continuing to focus on high-quality urban renewal as mentioned in this year's urban work conference. Meanwhile, the conference may propose measures such as a real estate stabilization fund and guaranteeing the purchase of affordable housing in order to alleviate inventory pressure and stabilize the liquidity of real estate companies. In the medium to long term, reforms in the household registration system, land system, and the improvement of the rental and purchase housing system are expected to become important components of the long-term effective mechanism for the real estate market.