Guotai Junan Securities: The real estate sector's valuation shows a "bottom divergence," and core quality real estate enterprises possess long-term investment value.

According to a research report from GF Securities, the real estate sector's valuation shows "divergence at the bottom," indicating that high-quality core real estate companies have long-term investment value. In the first half of 2026, the SW real estate sector's cumulative decline reached 16.4%, lagging behind the market (CSI 300) by 24 percentage points, with 16 mainstream property companies down by 14.9%. The current stock prices reflect a 16% expectation of a decline in housing prices, while housing prices have stopped falling over the past six months, marking the greatest degree of divergence since 2021. In the short term, there is optimism for a rebound as the sectors divergence is corrected. If, after September and October, the transaction center of core cities rises further and housing prices accelerate, there will be opportunities for value reversal in the sector. When selecting individual stocks, short-term sales growth continues to have an impact on stock prices, while also considering the company's performance in investment expansion and valuation conditions.