Core Insights - The article highlights the emergence of a "bank direct supply housing" market, where banks are selling properties at significantly lower prices than market rates, yet facing challenges in attracting buyers [1][2][6]. Group 1: Market Dynamics - On November 10, Lanzhou Rural Commercial Bank auctioned over a hundred residential units at prices as low as half the market rate, but all units received zero bids, indicating a lack of interest [1][2]. - The average starting price for these properties was around 2000 yuan per square meter, compared to the market price of approximately 5000 yuan per square meter [2][6]. - As of November 10, there were 414 residential and 957 commercial properties listed for auction on JD Asset Trading Platform, significantly higher than the previous year [2]. Group 2: Bank Participation - City commercial banks and rural credit cooperatives are leading the direct sale of properties, with significant listings from banks like Lanzhou Bank and Jilin Bank [3]. - Major state-owned banks are also participating, with Agricultural Bank listing 3436 properties and other banks like China Construction Bank and Postal Savings Bank listing over a thousand each [3]. Group 3: Asset Disposal Strategy - The surge in bank direct supply properties is closely linked to the disposal of non-performing assets, primarily properties that serve as collateral for loans that borrowers have defaulted on [4][5]. - Banks typically handle these assets through two methods: selling the debt at a discount or accepting properties in lieu of debt [4][5]. Group 4: Market Challenges - Despite the attractive pricing, the direct supply properties are struggling to sell, with some properties remaining unsold despite significant price reductions [6][10]. - The market for these properties is characterized by a disconnect between the listings and potential buyers, particularly in lower-tier cities where demand may not align with the marketing channels used by banks [10]. Group 5: Regulatory Environment - Banks face regulatory pressures to dispose of acquired properties within two years, but many find it challenging to sell these assets in a timely manner, leading to a backlog of unsold properties [9][10]. - The regulatory framework emphasizes the need for banks to manage these assets efficiently to avoid them becoming burdensome on their balance sheets [9].