Huatai Securities: Strong resilience in core city sales in the first half of the year.

Huatai Securities research report stated that in the first half of 2026, the supply and demand of the new housing market in the real estate sector continued to decline compared to the same period last year, but the second-hand housing market remained robust. Signs of "price stabilization" are starting to appear in some areas. In terms of structure, the year-on-year decline in sales of new properties in first-tier cities has significantly narrowed; improved demand is an important support for the new housing market, while the second-hand housing market mainly caters to essential needs, with a continuous increase in the proportion of low-priced properties. Huatai Securities believes that as the decline in rental prices continues to narrow, the improvement in the rent-to-price ratio lays the groundwork for the overall market recovery; attention should be paid to whether signals of price stabilization can spread from Shanghai to more core cities in the future. The resilience of housing prices in first-tier cities, optimization of listing structures, and strong support from emerging industries for urban structural recovery logic remain unchanged. The cost-effectiveness of industry allocation is highlighted, and it is recommended to adhere to the strategy of focusing on cities with a concentration of emerging industries.