On May 15th, the National Building Materials and Home Furnishing Prosperity Index BHI jointly released by the Ministry of Commerce's Circulation Industry Development Department and China Building Materials Circulation Association showed that the sales of building materials and home furnishing stores above designated size in the country were 87.44 billion yuan in April, an increase of 12.86% from the previous month and year-on-year. An increase of 66.28%; cumulative sales from January to April were 285.5 billion yuan, a year-on-year increase of 95.49%.

In April, the National Building Materials and Home Furnishing Prosperity Index (BHI) was 114.52, up 11.52 points month-on-month and 28.79 points year-on-year.

The Industry Research Department of China Building Materials Circulation Association believes that the national decoration market was active in April, and the consumer demand for building materials and household products continued to be released. The national building materials and household products market continued to rise steadily during the peak season, and BHI continued to rise. The specific analysis is as follows:

First, analyze the situation of the national real estate market: since the beginning of this year, the national real estate market has entered a high level of adjustment after the release of housing demand in the first quarter; and in April, the property market regulation policies in many places have been frequently increased, and the trend of strict regulation has been significantly strengthened, and the market has differentiated significantly worsened.

In terms of market performance, in terms of new homes, most real estate companies in April focused on the traditional peak season of the property market to maintain a relatively fast rate of housing launches. The overall property market across the country did not see price reductions, and the transaction volume of key cities and previous hot cities showed a downward trend.

According to data from China Index Research Institute, in April 2021, the average price of newly built residential buildings in 100 cities across the country was 15,952 yuan per square meter, an increase of 0.23% month-on-month, an increase of 0.03 percentage points from the previous month; a year-on-year increase of 4.05%, a higher increase the month narrowed by 0.02 percentage points.

In terms of second-hand housing, the average price of second-hand housing in hundred cities continued to rise year-on-month in April, and the growth rate continued to expand market enthusiasm in some cities increased, and prices in the Yangtze River Delta region remained strong.

The average price of second-hand housing in 100 cities across the country was 15,732 yuan per square meter, an increase of 0.50% month-on-month, an increase of 0.06 percentage points from the previous month; an increase of 3.58% year-on-year, an increase of 0.10 percentage points from the previous month.

In April, the national building materials and home furnishing market, which was directly affected by the real estate market, continued to grow steadily during the traditional peak season. Consumer demand for building materials and home furnishings was still active. Sales of building materials and home furnishing stores above designated size increased by 12.86% month-on-month and 66.28 year-on-year %.

Compared with the same period in 2019, the increase was 3.55%. The industry development has returned to the pre-epidemic level. It also reflects the gradual emergence of out country's economic and social development after the epidemic. Policies such as expanding domestic demand and promoting consumption have further stimulated the vitality of the building materials and home furnishing market.

Secondly, analyze the BHI sub-indices: April' s “Employment Rate Index” rose the most month-on-month, with an increase of 69.65 points, and it rose month-on-month for three consecutive months. This is not only a visual manifestation of enterprises' “struggling” to prepare for the peak season, but also reflects the current macro market confidence has increased under the economic situation.

This month’s "Manager Confidence Index" can also be corroborated. Its value is 192.21 points, an increase of 12.64 points from the previous month, and its absolute value is 69.68 (above 50 is optimistic about the market outlook, and below 50 is a weak market outlook), maintaining a high level of prosperity interval.

According to the National Bureau of Statistics and the China Federation of Logistics and Purchasing, the Purchasing Managers Index (PMI) of China's manufacturing industry in April was 51.1%, which was 0.8 percentage points lower than the previous month. It continued to expand on the basis of the obvious rebound in the previous month.

Many pan-home furnishing companies listed on the A-share market in April announced their 2020 annual reports. Through the analysis of the annual reports, it was also confirmed that the epidemic has caused the biggest impact on building materials and home furnishing stores. The sharp decline has made it difficult for traditional building materials and home furnishing stores to operate.

However, the epidemic has also accelerated the pace of industry transformation. The online and offline integration process of the industry has accelerated significantly. In the future, brand-new smart stores that truly achieve omni-channel consumer experience scenarios are still the main direction of industry transformation.

It is recommended that companies be based on the fundamentals, through the ultimate pursuit of product quality, fully tap and lead consumers to "pursue a better home life" demand, and actively seize the two historical opportunities of green building and rural revitalization, and take advantage of the trend to achieve high quality in the industry leaping development.