Core Insights - The real estate market is experiencing a paradox where many properties remain vacant while prices continue to rise, and developers are actively constructing new buildings [1][3][5] Group 1: Market Dynamics - The traditional economic principles of supply and demand do not adequately explain the current real estate situation, as overproduction typically leads to price reductions [3] - The perception of real estate has shifted from being merely a place to live to an investment tool, which encourages continuous purchasing despite vacancies [5] Group 2: Social Implications - The high property prices create challenges for individuals with genuine housing needs, exacerbating social inequalities and leading to significant waste of resources due to numerous vacant homes [7] - The government has recognized this issue and implemented the "housing is for living, not for speculation" policy, which has started to show results by curbing price increases and slowing down developers' land acquisition and construction activities [7]

Core Viewpoint - The real estate market in major cities is showing signs of stabilization, with new residential sales prices in first-tier cities experiencing slight increases, while second and third-tier cities face downward pressure due to high inventory and insufficient demand [1][4][6]. Group 1: Price Trends - In April 2025, new residential sales prices in first-tier cities remained flat month-on-month, with Beijing and Shanghai seeing increases of 0.1% and 0.5% respectively, while Guangzhou and Shenzhen experienced declines of 0.2% and 0.1% [1]. - Second-tier cities' new residential sales prices remained unchanged month-on-month, while third-tier cities saw a decrease of 0.2%, consistent with the previous month [5]. Group 2: Market Dynamics - The increase in new home prices in Beijing and Shanghai indicates underlying support factors in these markets, particularly in Shanghai where both new and second-hand homes have shown slight increases [4]. - The high-end improvement projects in Shanghai have contributed to sustained market activity, with significant demand reflected in record subscription numbers for new projects [4]. Group 3: Future Outlook - The overall real estate market is stabilizing due to various policies aimed at preventing further declines, but challenges remain as the market continues to adjust and transform [6]. - There is an increasing demand for quality housing that is green, smart, and safe, indicating potential growth in the market for upgraded and improved residential properties [6].