Huatai Securities: It is expected that the national housing price's second derivative will turn positive this year, and it is recommended to gradually layout real estate stocks.

Huatai Securities research report points out that since 2021, the overall housing prices in our country have been continuously declining, and in the first quarter of 2026, there are signs of improvement in the real estate market better than previous years. The current round of transaction recovery has a spontaneous nature, and behind it are deep factors such as the decrease in the home purchase threshold after a deep adjustment in housing prices, the convergence of rent-to-mortgage ratios, and the prices in most cities approaching the densely populated areas. It is expected that the second derivative of national housing prices will turn positive this year, and comprehensive stability still requires observing the chain of replacement, rental rates, and interest rate environment. International experience shows that during the stage of the second derivative of housing prices turning positive, the real estate sector will gradually bottom out, and it is recommended to gradually lay out real estate stocks, and recommend undervalued, cash-flow-stable, and high-quality regional resources with advantages of real estate companies and assets related to stock trading.