[Click eStock] "Real Estate Still Not Good... Housing Stocks 'On Hold'"

Hana Securities did not recommend housing stocks on the 3rd, stating that the real estate market conditions are still unfavorable.

[Image source=Yonhap News]

Seungjun Kim, a researcher at Hana Securities, explained, "The rise in jeonse prices in the metropolitan area is due to the decline in sales prices, causing demand to shift from sales to jeonse." He added, "In provincial metropolitan cities and other regions, both sales prices and jeonse prices are falling." However, he noted, "Recently, weekly apartment sales prices in Seoul have shown signs of turning upward, making it unclear whether demand has hit bottom," while also pointing out that "unsold units continue to increase, and there were many shortfalls in the March subscription results."

Researcher Kim stated, "Due to the continued occurrence of subscription shortfalls, new projects are still unlikely to emerge, so I do not recommend housing-related stocks." However, he suggested interior building materials sectors such as LX Hausys and Hanssem as areas of interest. He further analyzed, "The rebound in some indicators, such as the January apartment actual transaction price index, may signal a bottom," and emphasized that "additional monitoring and readiness to buy are necessary."

Regarding recent concerns about the increase in unclaimed construction work, Researcher Kim added, "An analysis of the financial status of some large construction companies shows that turnover rates have not changed significantly, but cash liquidity relative to sales has declined." He warned, "If this situation continues, activities such as asset sales or borrowing to secure cash may occur."