China's real estate sector is showing signs of stopping decline and moving towards stabilization, BOCOMI has released a report indicating.In 1-4M25, China's sales of newly built commercial housing reached RMB2.7035 trillion, with the YoY decline narrowing to 3.2%. Although there were still pockets of supply-demand imbalance, the residential market is expected to stabilize in 2025, with full-year new home sales projected at RMB8-8.5 trillion.Related NewsUBS Rates NWD as Sell; Shr Price May Face Further Downside Pressure in STThe report also mentioned that Hong Kong's real estate market is facing macro uncertainties in 2025, but key positive factors are emerging. Population growth and a sharp drop in HIBOR are anticipated to stabilize the residential market. The broker estimated that home prices would rise by 3%/ 5%/ 5% in 2H25/ 2026/ 2027.BOCOMI's preferred order for the Hong Kong real estate sector was retail REITs > low-leverage residential developers > retail property owners > REITs and developers with a high proportion of office business. LINK REIT (00823.HK) +0.450 (+1.090%) Short selling $60.12M; Ratio 8.357% was the broker's top pick.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-06 16:25.)