CITIC Securities: The residential real estate market has the foundation to stop falling and stabilize by 2026.

According to the research report of CITIC Securities, on February 25, 2026, several departments in Shanghai jointly issued a notice to further reduce housing purchase restrictions, optimize housing provident fund loan policies, and improve personal property tax policies based on the official website of the Shanghai Housing and Urban-Rural Development Commission. This adjustment to the purchase restriction policy significantly lowered the threshold for non-Shanghai residents to purchase property in Shanghai. The "new Shanghai residents" group is large, and there is an objective demand for housing. The entry of incremental demand into the market will help to counteract the expectation of an expanding secondary supply, in combination with other factors. At the same time, according to reports from Jiefang Daily and other sources, Shanghai is also piloting the collection and storage of existing housing stock, which will help address the surplus housing supply. Due to the market's sufficient internal adjustments and relatively positive policy attitude, the research report believes that there is a foundation for the stabilization of the residential market in 2026. In addition, the development of commercial real estate REITs provides real estate companies with a new future outlook. It is optimistic about the balance sheet repair of excellent real estate companies.