Core Viewpoint - The Nanjing real estate market is experiencing a significant downturn, with both new and second-hand housing transactions declining, leading to a notable increase in the proportion of price reductions across various neighborhoods [2][4][21]. Group 1: Market Performance - In August, the Nanjing market saw a continued decline in new home transactions, with six low-density residential plots sold at base prices [2]. - The number of high-frequency trading neighborhoods decreased for several consecutive months, with only 192 neighborhoods recorded in August, a 58% drop compared to the same period last year [4]. - The overall transaction volume for second-hand homes was only 6,300 units in August, indicating a significant contraction in market activity [4]. Group 2: Price Trends - A striking 68% of high-frequency trading neighborhoods experienced a month-on-month price decline, marking an 11 percentage point increase from the previous month and the second-highest level this year [4][11]. - The average listing price for second-hand homes in Nanjing dropped by 10.3% year-on-year as of August 2025, with 77% of high-frequency trading neighborhoods seeing a price reduction [11]. Group 3: Segment Analysis - Among different property types, 71% of affordable housing neighborhoods and 65% of improvement-type neighborhoods saw price declines, while high-end neighborhoods had a more balanced price change with 50% experiencing declines [13]. - In August, the majority of neighborhoods in key trading areas, such as Hexi North and Xianlin Lake, reported price drops exceeding 80% [15]. Group 4: Inventory and Supply Dynamics - Nanjing's narrow inventory digestion cycle is under 20 months, but the broader inventory digestion cycle is nearing 10 years, indicating a significant amount of "dead inventory" in the market [21]. - The ongoing high supply of land is contributing to the downward pressure on housing prices, as many previously desirable low-density residential plots are now being sold at base prices [21]. Group 5: Recommendations for Market Stabilization - To stabilize the market, it is recommended that authorities focus on supporting key trading areas and optimizing supply-side measures to restore confidence in supply and demand [22]. - A dynamic balance mechanism should be established to link land supply with broader inventory levels, aiming to improve market expectations and inventory structure [22].