Core Insights - The current second-hand residential market in China is experiencing a significant downturn, with properties being listed at prices much lower than their purchase prices, reflecting a broader trend of price declines across the market [1][5][9] Market Trends - The number of second-hand residential listings has surpassed 7.3 million nationwide, indicating a potential absorption period of up to 5 years at the current sales pace [1] - Major cities like Beijing, Shanghai, and Shenzhen are witnessing a surge in new listings, with Beijing seeing a 33% year-on-year increase, Shenzhen experiencing a 94% rise, and Shanghai's listings growing by 51% [3] - In Nanjing, the removal of sales restrictions led to a dramatic increase in listings from 720 to 3,114 in a single day, marking a 332% spike [3] Price Dynamics - In Guangzhou's Zhujiang New Town, a luxury property that was listed for 5 million last year sold for 3.31 million recently, reflecting a 33.6% drop in average transaction prices in the area [5] - The average number of price adjustments for second-hand homes in Beijing reached 4.2 times, with final sale prices typically 23%-28% lower than initial listing prices [9][10] Market Behavior - The market is caught in a "price drop spiral," where decreasing prices lead to buyer hesitance, further prompting sellers to lower prices [9][10] - Real estate agents are employing systematic price reduction strategies, with data showing that agents now need to conduct an average of 32 viewings to close a sale, compared to just 7 viewings in 2021 [7] Rental Market - Rental yields are declining, with some areas in Shenzhen seeing rent-to-price ratios fall below 1:800, significantly lower than international warning levels [12] Strategic Recommendations - Industry experts suggest a "gradient response" strategy for sellers, advising them to price their properties 5%-8% below recent sales in their area [14] - Buyers are encouraged to focus on properties that have been listed for over 120 days and have undergone multiple price reductions [14] Future Outlook - The era of real estate as a universal investment tool is considered over, with the market expected to return to its fundamental purpose of providing housing [16]