Core Viewpoint - The real estate market is experiencing significant price declines across major cities, with many households facing challenges related to property ownership and liquidity as home values decrease. Group 1: Price Declines - Major cities have seen substantial price corrections, with Wenzhou experiencing the largest drop of -63.14%, while cities like Dongguan and Huizhou follow with declines of -58.82% and -49.01% respectively [1][2] - Current home prices in various cities are significantly lower than historical peaks, indicating a trend of decreasing property values [1][2] Group 2: Challenges for Homeowners - Approximately 45% of households own multiple properties, and many are struggling with the difficulty of liquidating these assets as market demand wanes [4][10] - Homeowners are facing three main challenges: wealth depreciation due to falling property values, increasing holding costs, and difficulties in renting out properties [10][12][14] - The cost of maintaining multiple properties is rising, with expenses such as property management, repairs, and potential future property taxes adding financial pressure [12][16] Group 3: Market Dynamics - The oversupply of housing options, particularly after significant government stimulus measures, has led to increased vacancy rates and reduced demand for traditional real estate investments [6][8] - A shift in demographic trends, including declining birth rates and slower urbanization, is contributing to a decrease in housing demand, making it less likely for prices to rebound [8][10]

Core Viewpoint - The current trend in the real estate market across China shows a significant decline in housing prices, affecting both first-tier and second/third-tier cities, with some areas experiencing price drops of over 60% [2][9]. Group 1: Market Trends - Housing prices have decreased nationwide, with an example of a property purchased for 4 million now valued at 2.56 million, reflecting a 36% drop [2]. - In Shanghai's Minhang District, prices fell from 98,000 yuan per square meter to 46,000 yuan, a decline of 50% [2]. - The average decline in housing prices across the country exceeds 30%, with some cities seeing drops over 60% [9]. Group 2: Impact on Homeowners - Families with only one home are less affected as their primary concern is housing for living rather than investment [4]. - For families owning two homes, the cost of holding properties is increasing due to rising expenses such as property fees and maintenance, despite lower mortgage rates around 3% [6]. - The value of real estate constitutes 77% of household assets, making families with two homes vulnerable to rapid asset depreciation as prices continue to fall [9]. Group 3: Challenges in Selling Properties - The number of second-hand homes listed for sale is expected to surge, with a 15.8% increase year-on-year, making it difficult for homeowners to sell unless they price below market value by 10%-15% [9]. - The increase in listings indicates a challenging environment for families with two homes to liquidate their assets [9]. Group 4: Rental Market Pressures - The strategy of "renting to pay mortgage" is under threat, especially in third and fourth-tier cities where rental prices are low and demand is weak due to population outflows [12]. - In major cities, rental prices are also declining, complicating the ability of homeowners to cover mortgage payments through rental income [12].