Goldman with the note.
Demand: Overall our composite demand scored 40 out of 100 in 2H-May to MTD Jun 2024 (Exhibit 1), which is c.20% away from the historical mid-cycle level.
a)Fundamentally, we note i)home buyers’ affordability continued to improve on the cost side (comparable to late-2016 levels), supported by recent mortgage easing measures; meanwhile ii)“trade-in”program has been adopted by 70+ municipalities by end-May (vs. 30+/50+ by end-Apr/mid-May), and the first batch of pilot projects in Zhengzhou and Nanjing have locked-in small-scale transactions.
