Core Insights - The article discusses the challenges faced by families holding multiple properties in China, particularly in light of declining real estate prices and increasing holding costs [1][3]. Group 1: Real Estate Market Trends - Domestic housing prices have been on a downward trend, with some areas experiencing significant declines, such as the price per square meter in Shanghai's Minhang District dropping from 98,000 to 46,000, a decrease of over 50% [3]. - Nationwide, the average price of second-hand homes has fallen for more than 30 consecutive months, with an average decline exceeding 30% [3]. - Properties purchased at peak prices have seen substantial depreciation, with homes originally valued at 5 million now worth between 3.5 million and 4.25 million [3]. Group 2: Holding Costs and Financial Burden - The cost of holding properties has become a significant burden for families with multiple homes, with annual holding costs estimated at 3% to 4% of the property's value [3]. - For a typical 100 square meter apartment valued at 6 million, annual holding costs could range from 180,000 to 240,000, increasing if mortgage payments are still outstanding [3]. - The introduction of property taxes is expected to further increase holding costs and compress profit margins for property owners [3]. Group 3: Market Liquidity Issues - The number of second-hand homes listed for sale has surged, with major cities like Beijing, Shanghai, Chengdu, and Wuhan seeing listings exceed 200,000, while transaction volumes remain low [5]. - Even with price reductions, properties are difficult to sell, as evidenced by a case in Hangzhou where a property listed at 310,000 after a price drop of 400,000 remained unsold for 15 months [5]. - This inability to liquidate assets poses a significant challenge for families needing to convert properties into cash during emergencies [5]. Group 4: Strategic Recommendations - Experts suggest that families should prioritize selling high-rise and underperforming properties to reduce holding costs [6]. - Properties with strong value retention, such as low-rise buildings and those in desirable school districts, should be held cautiously [6]. - Staying informed about policy changes and leveraging potential benefits, such as property exchange programs, is recommended as the market shifts back to focusing on housing as a necessity rather than an investment [6].