Core Viewpoint - The article discusses the significant decline in prices of old and small residential properties (referred to as "老破小") across China, highlighting the factors contributing to this trend and the varying impacts in different cities [1][4][35]. Price Decline Overview - The most severe price drop for old and small properties in Shanghai occurred in 2024, with a decline exceeding 13% [4]. - The price changes from 2016 to 2025 show a consistent downward trend, with 2024 experiencing a drop of 13.9% compared to the previous year [5]. - Various districts in Shanghai, such as Minhang and Baoshan, have seen declines ranging from 11.7% to 28.4% [6]. Comparative Analysis - Compared to other first-tier cities, Shanghai's price decline for old and small properties is relatively moderate, with cities like Guangzhou and Shenzhen experiencing similar declines of approximately 31%-34% [9]. - Beijing has shown a smaller decline of about 10% due to lower prices and increased demand from first-time buyers [11]. New First-tier Cities - In new first-tier cities, properties aged over 20 years and under 50 square meters have seen drastic price reductions, with Wuhan experiencing a price drop of over 50% [11][15]. - Factors such as oversupply in the housing market and relaxed new housing price controls have exacerbated the price declines in these cities [15][16]. Characteristics of Properties Facing Decline - Properties that have lost their school district advantages or have high renovation costs without demolition prospects are particularly vulnerable to price drops [20][27]. - High-rise old properties without elevators are also facing significant depreciation, especially in cities with complex terrains [27]. Market Recovery Signs - Despite the declines, there are signs of recovery in the rental yield and transaction volume for old and small properties, particularly in first-tier cities [29][34]. - The rental yield for old and small properties in major cities has improved, indicating a potential stabilization in the market [30][31]. Conclusion - The article concludes that the market for old and small properties is undergoing a significant value reassessment, with a focus on long-term livability and practical value rather than speculative investment [35].

Core Viewpoint - The article discusses the significant decline in prices of old and small residential properties (referred to as "老破小") across China, particularly in major cities like Shanghai, Guangzhou, and Shenzhen, highlighting the factors contributing to this trend and the implications for investors and homeowners [5][7][50]. Group 1: Price Decline Overview - The price of old and small properties in Shanghai saw a dramatic drop, with a decline of over 13% in 2024, marking it as one of the most significant years for price reduction [11][12]. - The overall price decline is not limited to Shanghai; it is a nationwide phenomenon affecting various cities, with notable differences in the extent of the decline across regions [8][24]. - In Shanghai, the most affected areas include Yangpu and Minhang, with some properties experiencing price drops of up to 64.7% from their peak values [19][15]. Group 2: Comparative Analysis with Other Cities - When compared to other first-tier cities, Shanghai's price decline for old and small properties is relatively moderate, with declines in Guangzhou and Shenzhen being more severe, around 31% to 34% [26][28]. - New first-tier cities like Wuhan and Nanjing have experienced even more drastic declines, with Wuhan's prices halving from their peak [32][33]. - The article emphasizes that the price adjustments in these cities are influenced by oversupply and changes in local housing policies, which have further exacerbated the decline in property values [34][35]. Group 3: Factors Contributing to Price Decline - The decline in prices is attributed to several factors, including changes in school district policies that have diminished the value of properties previously considered desirable due to their educational advantages [51][56]. - Properties that are difficult to renovate or lack demolition prospects are also facing significant depreciation, as they do not meet modern living standards [67]. - High-rise old properties without elevators are particularly vulnerable, as they are less attractive to buyers compared to low-rise buildings [68][69]. Group 4: Market Recovery Signs - Despite the declines, there are signs of recovery in the rental market for old and small properties, with rental yields improving and some cities experiencing a slight uptick in transaction volumes [73][77]. - The article notes that the rental yield for old and small properties in major cities has become more attractive, with some areas showing rental returns exceeding 3% [74][76]. - The overall market is undergoing a value reassessment, with properties now being priced more in line with their actual living value, which may lead to a stabilization in prices [70][81].