Core Viewpoint - Despite the high vacancy rates in cities, developers continue to acquire land and build, driven by the need to support local economies, meet growing housing demands, and ensure their own survival in the market [1][3][5][7]. Group 1: Economic Impact - The real estate industry is deeply embedded in the local economy, and any slowdown in land acquisition and construction by developers could significantly impact local economic development and related industries, which provide numerous job opportunities [3]. - Developers must maintain a certain pace of land acquisition and construction to ensure economic and employment stability in the regions they operate [3]. Group 2: Housing Demand - There is a growing demand for improved housing, particularly from young couples who initially purchase smaller homes but later seek larger, more comfortable living spaces as their financial situation improves [5]. - Urbanization is driving significant housing demand as many rural residents move to cities, further increasing the need for new housing developments [5]. Group 3: Market Dynamics - The perception of oversupply in the housing market is misleading; the issue lies in a small number of individuals hoarding properties without renting or selling them, which wastes resources and creates challenges for genuine homebuyers [7]. - Developers continue to acquire land and build to address the needs of first-time homebuyers, despite the high number of vacant properties [7]. - The high vacancy rates in the housing market are concerning, with first-tier cities at approximately 20-25%, second-tier cities at around 25%, and third and fourth-tier cities exceeding 30% [7].

Core Insights - The Chinese real estate market continues to experience a downward trend, with the average price of second-hand residential properties in 100 cities hovering around 15,088 yuan per square meter, marking the 23rd consecutive month of month-on-month decline [1] - A staggering 98 cities reported price drops in March, with over 90 cities experiencing declines each month for the past 10 months [1] - The number of second-hand housing listings has surged, with cities like Chongqing exceeding 270,000 listings, Tianjin over 190,000, Suzhou around 177,800, and Beijing approximately 147,000 [1] Group 1: Market Conditions - The real estate market is facing a paradox of over 100 million vacant homes while many families with genuine housing needs are unable to afford properties [3][5] - The vacancy rate is reported to be as high as 21.8%, with estimates suggesting that the number of vacant homes could accommodate 300 to 400 million people [3] Group 2: Affordability Issues - In second and third-tier cities, the total price for a 90 square meter property ranges from 1.5 million to 2 million yuan, while in first-tier cities, it escalates to 5 million to 6 million yuan [5] - Local residents typically earn between 3,000 to 6,000 yuan per month, making home ownership a significant financial burden [5] Group 3: Proposed Solutions - Former Vice Minister of Housing and Urban-Rural Development Qiu Baoxing suggests creating a comprehensive mechanism to combat speculative buying and establish a corresponding tax system [7] - The proposed policy framework includes providing affordable housing and shared ownership options to low-income urban families, which could redirect some market demand and encourage speculators to exit [9] - Implementing a property tax or vacancy tax could increase the cost of holding properties, thereby discouraging speculative behavior and promoting more rational use of housing resources [10]