Core Viewpoint - The Chinese real estate market is experiencing a paradox where high vacancy rates coexist with rising property prices, driven by the perception of real estate as an investment rather than merely a living space [2][4]. Group 1: Market Dynamics - There is a significant number of vacant homes in residential areas, yet property prices remain high, and developers continue to build new properties [2]. - The typical market response of lowering prices to stimulate demand is not observed in the Chinese real estate market, leading to confusion [2]. - The consumer psychology of "buying high" rather than "buying low" contributes to the ongoing demand for properties, despite many being left vacant [2]. Group 2: Investment Perspective - Properties are increasingly viewed as investment vehicles that can generate profits even when vacant, sustaining buyer enthusiasm [2]. - This shift has transformed homes from places of residence into speculative tools, resulting in high vacancy rates alongside soaring prices [4]. Group 3: Government Intervention - The government has recognized the severity of the issue and has implemented the "housing is for living, not for speculation" policy, which has shown signs of effectiveness [6]. - The policy has successfully curbed rapid price increases and pressured developers, leading to a slowdown in land acquisition and new construction [6]. - As buyer enthusiasm wanes and developers reduce construction, the issue of vacant homes is expected to gradually improve [6].