Core Insights - The second-hand housing market in Hangzhou has experienced a significant decline, with October transactions dropping to approximately 5,900 units, a decrease of 7.5% from September and 35.3% year-on-year from October 2022 [1][3][11] - The average transaction price fell to 28,000 yuan per square meter, down about 10% compared to the same month last year [1][11] Market Trends - Unlike last year, the market is not stimulated by policy changes; after a brief rebound in March, the market has been on a downward trend [3][9] - There is a clear differentiation in market performance, with older neighborhoods experiencing price drops of over 30% compared to peak levels in 2021 [3][7] Transaction Dynamics - In October, seven out of the top twenty neighborhoods for transactions featured properties priced at "one million" yuan, indicating a shift towards lower-priced units [3][9] - High transaction volumes in certain areas, such as Jindi Zizai City, did not correlate with price stability, as prices continued to decline despite higher sales [5][9] Buyer and Seller Behavior - The market is characterized by cautious behavior from both buyers and sellers, with many sellers unwilling to lower prices significantly [7][11] - The majority of transactions are occurring in the lower price range, with over half of the sales coming from properties priced under 2 million yuan [7][11] Future Outlook - The market is entering a phase of differentiation and cooling, which has been evident since spring and became more pronounced in October [9][11] - The potential for market rebound or further decline in the coming months remains uncertain, with key indicators reflecting a cooling sentiment [11]