New-type coronavirus pneumonia has spread to provinces and municipalities across the country, and mainland real estate developers are waiting for it
A report published by HSBC Global Research pointed out that due to the impact of new pneumonia, the closing of sales offices and stopping sales activities by domestic property companies will affect the growth trend of residential sales across the country, and the construction progress of the project will be blocked, which will also affect the profitability of domestic housing. It is expected that the degree of uncertainty in the prospect of domestic housing will increase this year, and investors will not be allowed to cash out.
60 cities close sales offices
HSBC pointed out that as of January 27, 60 cities in the Mainland have ordered housing companies to close their sales offices to prevent the crowd from gathering and increasing the risk of spreading the virus. In addition, the epidemic has weakened the demand for home purchases in various places. This phenomenon will not be repeated this year. At this stage, it is predicted that the sales of mainland buildings throughout the year will fall by about 10% year-on-year.
HSBC also said that local governments announced the suspension of sales of new buildings, but did not mention the actual date of lifting the ban, and the construction site was suspended until next weekend, which may affect the cash flow of housing companies and the schedule of project completion; and the project The delay in completion will also have an impact on the profitability of China’s housing market this year.
The bank believes that due to factors such as the potential slowdown in domestic housing and unclear earnings risks, investors will profit from the domestic housing sector in the short term and leave
In addition, in addition to Hubei, the province with the largest number of new pneumonia cases, Guangdong, Zhejiang and Henan. Among the domestic property stocks tracked by HSBC, China Jinmao (00817) and Xuhui Holdings (00884) have a larger proportion of land reserves in Wuhan and Hubei Province; as for the domestic property stocks that hold the most land reserves in Hubei, Guangdong, Zhejiang and Henan , Including Longguang Real Estate (03380), Shenzhen Holdings (00604) and Hejing Taifu (01813).