Core Insights - The real estate market in 2025 is facing unprecedented challenges, with a significant decline in sales and an increase in unsold properties, indicating a critical turning point for the industry [3][6]. Group 1: Market Conditions - New residential property sales area decreased by 3.5% year-on-year, and sales revenue fell by 5.2% in the first half of the year [3]. - The total unsold residential property area reached 781 million square meters, the highest in a decade, highlighting the oversupply issue [3]. Group 2: Contributing Factors - The demographic shift, characterized by a declining birth rate and an increasing elderly population, is a major negative factor for the housing market. The number of newborns fell below 9 million last year, while the elderly population exceeded 300 million [5]. - Policy regulations have tightened, with the expansion of property tax trials to 30 cities, including major ones like Shanghai and Beijing, increasing the cost of home buying [5]. - Market sentiment is increasingly pessimistic, with buyers adopting a wait-and-see approach due to declining population dividends, stricter policies, and slowing economic growth, leading to a vicious cycle of falling prices [6].