Core Viewpoint - Despite the high vacancy rates in cities, developers continue to acquire land and build, driven by the need to support local economies, meet growing housing demands, and ensure their own survival in the market [1][3][5][7]. Group 1: Economic Impact - The real estate industry is deeply embedded in the local economy, and any slowdown in land acquisition and construction by developers could significantly impact local economic development and related industries, which provide numerous job opportunities [3]. - Developers must maintain a certain pace of land acquisition and construction to ensure economic and employment stability in the regions they operate [3]. Group 2: Housing Demand - There is a growing demand for improved housing, particularly from young couples who initially purchase smaller homes but later seek larger, more comfortable living spaces as their financial situation improves [5]. - Urbanization is driving significant housing demand as many rural residents move to cities, further increasing the need for new housing developments [5]. Group 3: Market Dynamics - The perception of oversupply in the housing market is misleading; the issue lies in a small number of individuals hoarding properties without renting or selling them, which wastes resources and creates challenges for genuine homebuyers [7]. - Developers continue to acquire land and build to address the needs of first-time homebuyers, despite the high number of vacant properties [7]. - The high vacancy rates in the housing market are concerning, with first-tier cities at approximately 20-25%, second-tier cities at around 25%, and third and fourth-tier cities exceeding 30% [7].

Core Insights - The current real estate market is experiencing a shift, with a focus on the second-hand housing market and its transaction structure, particularly in major cities like Shanghai, Beijing, and Shenzhen [2][24][32] Group 1: Transaction Trends - The proportion of transactions under 3 million yuan is increasing, with Beijing seeing the most significant rise from 35% to 46% over the past year, while Shanghai and Shenzhen increased by 2% and 7% respectively [6][8] - The average transaction price for second-hand homes has decreased, with Shanghai dropping from 2.1 million yuan to 1.96 million yuan, and similar declines observed in Beijing and Shenzhen [8][9] - In second-tier cities, the 2 million yuan price point is critical, with cities like Chengdu and Nanjing seeing significant increases in transactions below this threshold [11][14] Group 2: Demand for Larger Units - There is a notable increase in the transaction volume of larger units (over 130 square meters) in cities like Shenzhen, where the proportion of such transactions has reached a five-year high [15][19] - The demand for larger homes is driven by changing family structures and lifestyle upgrades, particularly among families with multiple children [23][31] Group 3: Inventory and Pricing Pressure - The inventory of second-hand homes is rising, with cities like Chengdu seeing a 45.9% increase in listings over six months, leading to increased competition and downward pressure on prices [24][27] - The average price of second-hand homes across 100 cities has dropped by 7.24% year-on-year, indicating a continued decline in the market [28][30] Group 4: Market Outlook - The overall second-hand market is in a phase of weak recovery, with demand entering a new adjustment period, characterized by buyer hesitation and a tug-of-war between buyers and sellers [32][33] - Some cities are showing signs of improvement, with stable transaction volumes and manageable inventory levels, which could help restore buyer confidence [32][33]