Core Insights - The core viewpoint of the article highlights a significant decline in the supply of foreclosed properties while maintaining high transaction volumes, indicating a shift in market dynamics [1][5]. Group 1: Supply and Demand - The number of properties listed for auction decreased to 29,000, a 31% decline month-on-month and a 13% decline year-on-year, marking a new low for the second half of the year [7]. - The total starting price for these listings was 27.1 billion, down 33% from the previous month [7]. - In major cities, the supply of auctioned properties was concentrated, with Chongqing leading at 1,430 listings, while Guangzhou and Shenzhen followed with 360 and 215 listings respectively [8]. Group 2: Transaction Volume - The transaction volume remained high, with 5,169 properties sold, a 3% increase month-on-month and an 8% increase year-on-year, continuing a trend of over 5,000 transactions for three consecutive months [12]. - The total transaction value reached 5.9 billion, reflecting a 4% increase from the previous month [12]. - Guangzhou led in transaction numbers with 205 properties sold, while Shenzhen topped in transaction value at 840 million [14]. Group 3: Transaction Rate - The average transaction rate for foreclosed properties rose to 21.4%, an increase of 2.1 percentage points from the previous month, indicating a recovery in market activity [18]. - The transaction rate in key cities like Shenzhen reached 45%, significantly higher than the national average [21]. Group 4: Pricing Dynamics - The average discount rate for sold properties was 32.7%, up 0.4 percentage points month-on-month, while the average starting discount rate for auctioned properties was 29%, marking a new high since Q2 [22]. - Only 10% of sold properties exceeded their appraised values, indicating a trend towards lower pricing expectations among sellers [19]. Group 5: Market Outlook - The article suggests that the trend of normal residential properties being sold through foreclosure channels is becoming more common, with 9.4% of transactions involving standard assets [5]. - High-value properties are entering the foreclosure market, with notable examples including a villa in Shenzhen sold for 364 million, reflecting strong demand for premium assets [15].