Core Viewpoint - The real estate market in China is experiencing a downturn, with significant declines in both new housing sales and investment, but there are signs of stabilization in the second-hand housing market, suggesting a potential recovery in 2026 [3][4][5]. Sales Data - In 2025, the sales area of new commercial housing was 88,101 million square meters, a year-on-year decrease of 8.7% - The sales revenue of commercial housing was 83,937 billion yuan, down 12.6% from the previous year [3]. Investment Data - The funds received by real estate development enterprises amounted to 93,117 billion yuan, a decline of 13.4% year-on-year, with personal mortgage loans decreasing by 17.8% [3]. Market Trends - The second-hand housing market is showing a notable recovery, with a 9% week-on-week increase in transaction volume in key cities during the third week of 2026 [4]. - The price of new homes showed signs of stabilization, with six cities reporting a month-on-month increase in December 2025 [5]. Policy Changes - New policies introduced in December 2025 aimed to optimize real estate regulations, including relaxed purchasing conditions for non-local families and support for multi-child households [6]. - The reduction of the real estate value-added tax is expected to lower transaction costs by 3%-5%, enhancing the liquidity of second-hand homes [7]. Future Predictions - The real estate market is expected to see continued policy easing in 2026, with potential subsidies and incentives for home purchases in cities with high inventory [8]. - The decline in housing prices is anticipated to slow down, with core cities likely to stabilize first due to population inflow and resource advantages [9].