As an industry directly influencing the consumption of construction wood formwork, the real estate sectors every move is closely monitored by the timber industry. In recent years, the real estate market has been sluggish, leading to a corresponding decline in the demand for construction wood formwork. Many in the timber industry are pinning their hopes on a recovery in real estate demand to drive a rebound in the timber market.

Entering 2023, a series of favorable policies have been introduced, seemingly providing a "strong stimulant" to the real estate sector, with infrastructure expectations also on the rise. However, reports indicate that in the first half of 2023, even in previously popular cities with relatively better real estate markets, signs of cooling have frequently emerged. In the first seven months of the year, only 35 real estate developers added land reserves worth over 10 billion yuan, and nearly 60% of the top 100 developers have not acquired any land. The Real Estate Development Climate Index has also continued to decline, hovering at low levels, with recovery falling short of expectations. This raises the question: Can wood formwork demand still rely on a recovery in the real estate sector?

Nevertheless, the recent series of favorable policies in the real estate industry may stimulate its recovery:

Since June 2023, multiple regions have introduced optimization policies for the real estate market. A potential rebound in the real estate market could drive increased demand for timber and boost industry demand.

On July 10, the Peoples Bank of China and the National Financial Regulatory Administration jointly issued the Notice on Providing Financial Support for the Stable and Healthy Development of the Real Estate Market, strongly backing the stable and healthy growth of the real estate sector.

On July 24, during a meeting of the Political Bureau of the Central Committee of the Communist Party of China, it was explicitly stated for the first time that policies should be adjusted and optimized in a timely manner to adapt to the new situation of significant changes in the supply-demand relationship in Chinas real estate market.

On August 21, the Loan Prime Rate (LPR) saw an unexpected asymmetric decline, with the one-year LPR dropping by 10 basis points while the five-year LPR remained unchanged. Chen Wenjing, Director of Market Research at the China Index Academy, noted that if more property market optimization policies are introduced and implemented soon, the effects of these policies could be more pronounced.