Primary sales stayed weak: According to the preliminary data from onlinegovernment websites, primary sales in the six cities we keep track ofstayed pretty much flat from the golden week levels (defined as averagedaily sales between September 29 and October 13). Exception wasShenzhen where weekly average daily sales rebounded some 20% W/Wfrom the golden week level and were up 145% from a year-ago level.Average selling prices in Shenzhen also rose a bit to Rmb12,776/sqm,compared to Rmb11,013/sqm on average in September.• Need more time to take in the situation: Local governments havestarted taking their own initiatives to ease things for local markets since2Q08. Overall, they have made tax reductions in relation to propertytransactions and have eased restriction on lending to first time homebuyers and allowed deferred land premium payment from developers.Against this backdrop, our preliminary checks showed that sales volumeshave yet been boosted. In our opinion, home buyers are not likely tosignificantly return to the market until a much brighter outlook is seen.• Key launches: There are not too many launches during the past week.According to Soufun, KWG launched fully fitted apartments at LingFeng in Guangzhou’s Tianhe district recently. The project was priced atRmb17,000-19,000/sqm with about Rmb4,800/sqm worth of furnishingcost. The ASP, however, was some 20% lower than prior marketexpectation. Pre-sales of C C Land’s i-City are expected to start soon.The show flats was opened in the past week.