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With prevention and control of the epidemic basically going stably, the real estate industry has resumed work and production solidly. In order to further make up for the negative impact of the early epidemic on sales, the enterprise has increased its efforts to promote the sales of the houses and strived to recover the funds as soon as possible. In the context of the steady recovery of market expectations, real estate transactions are also gradually recovering.

According to China Index Research Institute, in May, under the guidance of the general tone of real estate market regulation and control of "no speculation in housing", local government has adopted more flexible policies to local conditions, but the recovery speed of the real estate market was slightly different. Among them, the overall recovery of market demand in the first-tier and core second-tier cities is relatively fast; some third-tier and fourth-tier cities are affected by multiple factors such as population, industries, etc., and the recovery of market demand is relatively slow.

According to the data of China Index Research Institute, up to June 7th, the total inventory of the 12 first and second-tier cities monitored rose slightly by 0.04% month on month. As of the first week of June, Beijing, Fuzhou and Wenzhou has experienced a high rise of 4.44%, 4.08% and 0.24% respectively. In the monitored cities, Dongying's inventory has decreased by 6.06% month on month.

In fact, since May, the newly added supply of urban housing has increased slightly compared with the month on month ratio. In addition, affected by the continuous release of the backlog of purchase demand during the epidemic period, most of the city's market transactions have gradually recovered, and the volume of transactions has rose simultaneously. From the perspective of the ratio of sales to supply, the first-tier cities are more optimistic in terms of their ability of reducing inventory. By the end of May, Nanjing and Hangzhou are the cities with critical inventory, and the current reducing-inventory of which cycle are 5.77 months and 5.11 months respectively.

A report recently released by Keri Real Estate Research Center points out that the supply and demand of most cities in May has maintained a balance driven by the apparent recovery of transactions. The cycle of digestion in 28 monitored key cities was has been significantly narrowed, more than 80% of the cities fell below the warning line 18 months ago, while those in Hangzhou, Jinan and other cities were less than 6 months.

From the perspective of inventory status, the supply-demand ratio of more than 60% of the 28 cities is less than 1; at the same time, the inventory area of more than 60% of the cities has declined on a month on month basis. However, compared with the same period last year, more than 70% of the cities' inventory is still in the ascending channel, with the year-on-year growth of more than 40% in Qingdao, Zhengzhou, Hangzhou, etc.

Keri believes that with the arrival of the half-year performance sprint season, real estate enterprises will speed up the pace of supply, and supply is expected to grow in a large amount, or even reach a record high within the year. It is expected that the market will remain hot in June.(Journalist Gao Wei)