Contradictions in KE Holdings' 2025 Q1 Earnings Call: Navigating Housing Market Recovery, Agent Efficiency, and Developer Strategies

Housing market recovery and policy impact, efficiency and expansion of housing agents and stores, housing market outlook and policy support, new home market challenges and developer strategies, and store and agent network expansion and efficiency are the key contradictions discussed in KE Holdings' latest 2025Q1 earnings call.



Rapid Business Growth:
- KE Holdings Inc. reported a year-over-year increase of 34% in total GTV for Q1 2025, with revenue rising by 42.4% year-over-year.
- Growth was driven by the market momentum built by supportive policies since September 2023 and the company's active growth strategy.

Efficiency Improvements:
- GTV per store per agent rose by 8% and 14%, respectively, marking the fourth consecutive quarter of year-over-year increase.
- Efficiency improvements were attributed to better store management, enhanced agent productivity, and increased participation from stores in new home projects.

New Home Transaction Performance:
- GTV for the new home transaction business increased by 53% year-over-year, outperforming the industry, while the top 100 developers' sales fell by approximately 7%.
- The strong performance was due to deepened collaboration with developers and finely tuned operational capabilities.

Home Renovation and Furniture Revenue:
- Revenue from the home renovation and furniture business reached RMB2.9 billion, up 22.3% year-over-year, with a record high contribution margin of 32.6%.
- Growth was driven by increased orders from home renovation and enhanced operational efficiency.