HX Chen's questions to Ke Holdings Inc (BEKE) leadership • Q2 2024
Question
HX Chen inquired about the real estate market's reaction to recent supportive policies, the performance divergence between new and existing homes, the sustainability of transaction volumes, and the outlook for the second half of 2024.
Answer
CEO Yongdong Peng explained that Q2 saw a steady, month-by-month market improvement, particularly in existing home transactions following the May 17 policy changes. He noted a strong rebound in Tier 1 cities, driven by relaxed restrictions and improved affordability, which attracted more first-time buyers. Peng highlighted that the new home market recovery is slower due to factors like diminished price advantages and a mismatch in supply. For H2 2024, he anticipates stabilization but noted that buyer wait-and-see sentiment could constrain a full recovery, with policy changes remaining a key variable.