Core Viewpoint - The article discusses the current difficulties in the real estate market, highlighting that high prices and lack of buyers are not the root causes of the problem, but rather a complex interplay of factors affecting buyer sentiment and market dynamics [1][11]. Market Conditions - A sales representative mentioned that only one unit was sold in the previous month, and it required a price reduction of 150,000 yuan to close the deal [3]. - The inventory of available properties has tripled in certain areas, with listings increasing from 20 to over 60, and significant price reductions are common, such as a drop from 1.8 million yuan to 1.55 million yuan for a two-bedroom unit [3][5]. - A buyer expressed hesitation in making a purchase due to ongoing price declines, indicating a shift in market confidence [5]. Buyer Sentiment - Potential buyers are increasingly cautious, with one individual deciding to rent instead of buy due to high upfront costs and ongoing market instability [7]. - A buyer's parents are also uncertain, reflecting a broader sentiment of confusion and concern regarding the current real estate landscape [5][7]. - The article notes that many buyers are struggling with the new realities of increased down payment requirements and rising interest rates, which have altered their perceptions of real estate as a safe investment [7][9]. Policy Impact - Local government policies, such as tax subsidies for new home purchases, are perceived as complicated and not beneficial for most buyers, leading to skepticism about their effectiveness [9][11]. - The article suggests that while some policies sound appealing, the practical implementation often presents challenges that deter potential buyers from taking action [9][11]. Sales Environment - Real estate agencies are experiencing a decline in foot traffic, with staff appearing disengaged and less proactive in attracting customers compared to previous years [11]. - The presence of "price drop" stickers on listings indicates a significant shift in the market, with many properties struggling to attract interest [11].

Core Insights - The new housing prices in Hangzhou have increased by 0.2% month-on-month and 2.1% year-on-year, marking four consecutive months of growth for new homes [1] - Conversely, the second-hand housing prices have decreased by 0.8% month-on-month and 2.4% year-on-year, indicating a widening decline [1] - The transaction volume for second-hand homes in June was 7,335 units, down 4.9% month-on-month and 17% year-on-year, suggesting a pessimistic outlook for the second half of the year [1] - As of July 24, the transaction volume for second-hand homes is projected to be around 6,000 units, based on a daily average of 217 units sold [1] Market Dynamics - The market is currently characterized as a "buyer's market," with over 180,000 second-hand homes listed and approximately 30,000 properties experiencing price reductions each month [1] - The luxury housing market remains robust, with several properties achieving transaction prices exceeding 100,000 yuan per square meter, such as Jiuxi Rose Garden at 236,620 yuan per square meter [1][9] - The decline in second-hand home prices is attributed to the influx of new homes in prime locations, which offer better quality compared to surrounding second-hand properties, leading to a shift in buyer preference [2] Sales Performance - The sales volume for second-hand homes in July is expected to be significantly lower, with only about 5,000 units sold by mid-month [1] - The current market viewing activity is approximately 80% of June's levels, indicating a decrease in buyer engagement [2] - Industry analysts suggest that unless sellers are willing to make substantial price concessions, transactions will remain challenging [2]