Core Insights - The article discusses the significant decline in real estate prices in Guangzhou and other cities, highlighting the experiences of a homeowner who regrets his investment due to drastic price drops [1][3] - It emphasizes the importance of two key metrics for evaluating potential real estate investments: annual investment return rate and neighborhood listing rate [9][13] Market Overview - Real estate prices have dropped significantly, with Shanghai's second-hand housing prices falling by 32% from their peak, and some neighborhoods experiencing declines of up to 40% [3] - Many cities have seen prices revert to levels not seen since 2017, effectively negating eight years of price increases [3] - Despite these declines, there is uncertainty in the market, with differing opinions on whether prices have hit bottom or will continue to fall [3][4] Key Metrics for Investment - **Annual Investment Return Rate**: The average return rate in first-tier cities is currently 1.38%, which is lower than bank savings rates. A return rate of at least 5% is suggested as a threshold for worthwhile investment [6][10] - **Neighborhood Listing Rate**: A listing rate below 5% is considered ideal, indicating a balanced supply and demand. High listing rates, such as over 10% in some neighborhoods, suggest oversupply and potential further price declines [6][7][10] Conclusion - The article warns against the misconception that significant price drops automatically indicate a buying opportunity. It stresses the need for careful analysis of the two key metrics before making investment decisions [12][13]