Core Viewpoint - The real estate market in China is experiencing a significant downturn, with property prices declining for 30 consecutive months, leading to a shift in investment sentiment and financial pressure on homeowners [3][5][15] Market Trends - Property prices in major cities have seen drastic reductions, with some areas experiencing declines of up to 45%, while secondary markets are struggling with high inventory levels and low demand [7][9] - The rental market is also under pressure, with landlords forced to lower rents significantly to attract tenants, resulting in negative cash flow for many property owners [11][15] Homeowner Challenges - Nearly 45% of urban households own two or more properties, creating a financial burden as property taxes and maintenance costs rise, while rental income remains stagnant [5][11] - Many homeowners are facing increased financial strain due to job losses and salary reductions, making it difficult to manage mortgage payments [5][11] Policy Implications - The government is introducing new housing policies aimed at increasing affordable housing supply, which may further impact the rental market and property values [11][13] - Initiatives such as the "old for new" policy and reduced down payment requirements for first-time buyers signal a potential shift towards supporting homebuyers [13][15] Investment Strategies - Some investors are beginning to divest from non-core assets and pay down mortgages to alleviate financial pressure, indicating a strategic shift in response to market conditions [13][15] - The current market dynamics suggest that holding onto properties may not be as beneficial as previously thought, prompting a reevaluation of investment strategies [15]