Group 1 - The domestic housing market has entered a long-term adjustment trend since 2022, with average housing prices expected to drop by 30% by March 2025, affecting both second and first-tier cities [1] - The real estate market is experiencing sluggish sales, with a total unsold residential area reaching 7.5 trillion square meters, indicating significant inventory pressure across various regions [1] Group 2 - Since 2024, the government has implemented several policies to stimulate the housing market, including lifting purchase restrictions in most cities, increasing public housing loan limits, and reducing mortgage rates from over 4% to below 3% [3] - Tax incentives have also been introduced, such as reductions in deed tax and value-added tax, to encourage home purchases [3] Group 3 - The necessity to rescue the housing market stems from its impact on 56 related industries, including construction and furniture, which are crucial for local GDP growth [5] - The real estate sector provides significant employment, with over 13 million employees in real estate companies and millions more in related industries, highlighting the potential job market pressures if the sector fails [5] Group 4 - The real estate market is vital for local government finances, with land transfer fees accounting for 50% of local fiscal revenue and real estate-related taxes making up 35% [7] - A prolonged downturn in the housing market could severely reduce these revenues, affecting government operations, including civil servant salaries and infrastructure projects [7] Group 5 - The fiscal burden on the government includes approximately 80 million people reliant on public funds, with a projected annual salary expenditure of 8 trillion yuan, of which 5 trillion yuan is linked to the real estate sector [9] - Failure to stabilize the housing market could lead to significant salary payment gaps for these public sector employees, emphasizing the urgency of market intervention [9] Group 6 - The ultimate goal of the housing market rescue is not merely to influence price fluctuations but to stabilize prices in the short term, allowing for a transition towards a more diversified economy focused on high-end manufacturing and technology [12] - As part of the recovery efforts, local governments are expected to gradually introduce property taxes to create new revenue streams amid declining land transfer fees [12]