In the first month of the second half of the year, the driving effects of policies and the effectiveness of real estate companies' own adjustments have begun to show initial results. Statistics reveal that as of August 14, 20 real estate companies have disclosed specific sales data for July. Although most companies' sales revenue has not yet shown significant year-over-year improvement, unit price growth has been notable: 13 out of 20 companies recorded year-over-year increases in unit sales prices, accounting for over 60%. These companies with rising unit prices share a common characteristic in their land acquisition strategies: concentrating on tier-1 and tier-2 cities. Industry analysts believe that strong sales of quality projects in core areas of tier-1 and tier-2 cities like Beijing have driven local market recovery. Despite the overall market differentiation trend persisting, this localized positive momentum helps drive sustained development of the overall market and provides opportunities for more distressed real estate companies to recover their operations.

**Price Benchmarks Maintained with Guaranteed Inventory Turnover**

According to incomplete statistics, among the 20 real estate companies, 13 companies including Yuexiu Property, Seazen Holdings, Longfor Group, Gemdale Corporation, and China Resources Land showed generally rising unit sales prices year-over-year.

Among them, Sunac China experienced the largest year-over-year increase in July unit sales prices at 97.25%, influenced by strong-selling projects in core areas. Additionally, Yuexiu Property, China Resources Land, China Merchants Shekou, and Sinic Holdings recorded year-over-year increases of approximately 47.44%, 35.68%, 30.1%, and 23.19% respectively.

The rise in unit sales prices is closely related to real estate companies' previous adjustments to land acquisition strategies. In 2024, multiple real estate companies expressed their intention to optimize land reserve structures, focusing on increasing land reserves in tier-1 and tier-2 cities. These high-tier cities have become hotspots for real estate companies' strategic deployment, seeking higher profit returns and market share in the competitive market environment.

Taking Sinic Holdings as an example, its management clearly stated at the 2024 annual results conference that "the company will persist in focusing on tier-1 and tier-2 core cities." The annual report shows that Sinic Holdings acquired 22 land parcels throughout 2024, with tier-1 and tier-2 cities accounting for 90%. As of the end of 2024, Sinic Holdings had accumulated unsold inventory value of approximately 280 billion yuan, with 87% located in tier-1 and tier-2 cities.

In 2025, Sinic Holdings further increased land acquisition efforts in tier-1 cities. Analysis shows that from January to July 2025, Sinic Holdings jointly acquired 3 land parcels in Beijing with other real estate companies, with land transfer fees totaling approximately 23.41 billion yuan.

Similarly, Yuexiu Property, which proposed "focusing on core cities and deep cultivation in core areas," invested a total of 29.46 billion yuan in equity investments throughout 2024, with over 80% of funds directed toward tier-1 cities including Beijing, Shanghai, and Guangzhou, investing 9.3 billion yuan, 6.9 billion yuan, and 8.16 billion yuan respectively.

Specifically, Yuexiu Property acquired 3 land parcels in Beijing, adding approximately 540,000 square meters of land reserves; acquired 5 land parcels in Shanghai, adding approximately 300,000 square meters of land reserves; and acquired 8 land parcels in Guangzhou, adding approximately 1.1 million square meters of land reserves. New land reserves in tier-1 cities accounted for over 70%.

Guo Yi, Chief Analyst at Heshuo Institution, stated that real estate companies currently focus their land reserve layouts on tier-1 and tier-2 core cities. These cities can maintain certain price benchmarks while ensuring property inventory turnover speed, which not only creates broader space and opportunities for real estate companies' land acquisition but also enables enterprises to invest more costs in improving product quality.

Guo Yi further pointed out that by optimizing product quality, real estate companies' supply can more precisely match homebuying families' needs, thereby achieving dual growth in inventory turnover speed and profit margins. Therefore, the core logic of real estate companies optimizing land reserve layouts lies in focusing on market demand, and this process drives product quality improvement and reasonable price increases.

**Distressed Real Estate Companies' Operations Improve**

Under the influence of rising unit sales prices, some distressed real estate companies have also seen sales revenue recovery. It was noted that relying on strong sales of core projects, Sunac China's operating conditions have continued to improve, maintaining year-over-year growth for three consecutive months. From May to July 2025, Sunac China's sales revenue was 4.8 billion yuan, 7.55 billion yuan, and 1.53 billion yuan respectively, compared to 2.27 billion yuan, 1.56 billion yuan, and 1.41 billion yuan in the same period last year, representing increases of 111.45%, 383.97%, and 8.51% respectively.

Yan Yuejin, Deputy Director of Shanghai E-house China R&D Institute, stated that Sunac China's sales revenue recovery benefits from high-end projects that Sunac has deployed in core cities in recent years, which are currently experiencing favorable sales opportunities. For example, in the first half of the year, Sunac China's Shanghai No.1 Courtyard accumulated sales revenue exceeding 17 billion yuan, with four batches of units in June selling out within 2 hours of opening.

Xie Yifeng, Director of China Urban Real Estate Research Institute, stated that for real estate companies to improve operations, they must first drive sales revenue growth and accelerate inventory turnover to enhance performance. Additionally, they should expand diversified marketing channels to support sales growth. Meanwhile, they should explore new financing channels to ensure liquidity and avoid crises. They can also optimize costs by adjusting organizational structures, streamlining processes, and strengthening supply chain cooperation.

**Local Sector Stabilization Boosts Market Confidence**

While real estate companies optimize land reserves, continued policy efforts further assist in improving real estate companies' operating conditions.

From the financial perspective, according to CRIC statistics, since July, national housing provident fund-related policies have been mentioned 22 times, mainly involving loan amount preferences for multi-child families, withdrawal method optimization, and down payment ratio reductions.

On August 8, the Beijing Housing and Urban-Rural Development Commission and Beijing Housing Provident Fund Management Center issued the "Notice on Further Optimizing and Adjusting Real Estate-Related Policies in the City," addressing issues including optimizing first-home loan recognition standards, increasing second-home loan amounts, and raising loanable amounts per year of provident fund contributions.

Additionally, Harbin and Jinhua promoted the smoothing of property exchange chains through increased loan amounts and allowing "mortgage transfer with existing loans" respectively; Xi'an comprehensively optimized related policies, involving early loan settlement, non-counting of loan times, and income verification for flexible employment personnel.

Yan Yuejin stated that continued optimization of provident fund policies has significantly lowered homebuying thresholds and costs. This not only directly stimulates the release of rigid and improvement-oriented housing demand but also enhances buyers' payment capacity and purchase willingness by reducing homebuying costs, thereby driving new home transaction activity.

While lowering homebuying thresholds, increased land supply in core areas of tier-1 and tier-2 cities and the implementation of "good housing" policies have driven new home quality improvement while ensuring future project inventory turnover for real estate companies.

Guo Yi stated that from Beijing's market perspective, relatively typical characteristics are emerging: quality projects in the city's core areas have successively entered the market this year, becoming popular developments. This provides more opportunities for improvement-oriented demand release on one hand, and injects new vitality into market trends on the other, consolidating price foundations in local sectors and boosting regional market confidence.

Guo Yi stated that current market differentiation trends persist, but local sector recovery helps drive sustained positive development of the overall market through point-to-surface effects.