Core Viewpoint - The current trend in the real estate market across China shows a significant decline in housing prices, affecting both first-tier and second/third-tier cities, with some areas experiencing price drops of over 60% [2][9]. Group 1: Market Trends - Housing prices have decreased nationwide, with an example of a property purchased for 4 million now valued at 2.56 million, reflecting a 36% drop [2]. - In Shanghai's Minhang District, prices fell from 98,000 yuan per square meter to 46,000 yuan, a decline of 50% [2]. - The average decline in housing prices across the country exceeds 30%, with some cities seeing drops over 60% [9]. Group 2: Impact on Homeowners - Families with only one home are less affected as their primary concern is housing for living rather than investment [4]. - For families owning two homes, the cost of holding properties is increasing due to rising expenses such as property fees and maintenance, despite lower mortgage rates around 3% [6]. - The value of real estate constitutes 77% of household assets, making families with two homes vulnerable to rapid asset depreciation as prices continue to fall [9]. Group 3: Challenges in Selling Properties - The number of second-hand homes listed for sale is expected to surge, with a 15.8% increase year-on-year, making it difficult for homeowners to sell unless they price below market value by 10%-15% [9]. - The increase in listings indicates a challenging environment for families with two homes to liquidate their assets [9]. Group 4: Rental Market Pressures - The strategy of "renting to pay mortgage" is under threat, especially in third and fourth-tier cities where rental prices are low and demand is weak due to population outflows [12]. - In major cities, rental prices are also declining, complicating the ability of homeowners to cover mortgage payments through rental income [12].