Core Insights - The domestic real estate market in China has entered a significant adjustment period since Q2 2021 due to ongoing regulatory policies, with the average national housing price dropping from 11,000 yuan per square meter to 9,526 yuan, a decline of 15% [1] - In the first half of this year, the total sales of commercial housing reached only 6.6 trillion yuan, significantly lower than last year's total of 18.1 trillion yuan, indicating a sales drop of 47.3% among the top 100 real estate companies [3] - Various cities have begun to relax strict regulations in an attempt to revitalize the sluggish real estate market, with 23 cities implementing "price drop limits" and some offering cash subsidies to buyers, yet the overall market remains depressed [3] Real Estate Market Trends - The current adjustment trend in the real estate market raises concerns about four types of properties becoming difficult to sell: high-rise residential buildings, small property rights houses, properties in remote suburban areas, and properties in cities experiencing population decline [4] - High-rise residential buildings are facing challenges due to larger shared areas (25%-30% compared to 10%-15% in low-rise buildings), increased evacuation difficulties during emergencies, high demolition costs, and inconvenience during elevator maintenance, leading to concerns about their resale value [4] - Small property rights houses, once appealing due to lower prices, now face significant selling obstacles due to quality issues and lack of legal recognition, making them hard to sell in the future [6] - Properties in remote suburban areas are suffering from inadequate infrastructure and transportation issues, with price declines in these areas often exceeding those in city centers, making them likely to become "hot potatoes" in the market [6]

Group 1 - The Chinese real estate market has shown signs of fatigue since the second quarter of 2021, with the average national housing price dropping from 11,000 yuan per square meter to 9,526 yuan per square meter, a decline of 15% [1] - As of June this year, 34 out of 70 major cities have seen second-hand housing prices fall below two years ago, with 27 cities below three years ago, and 6 cities even lower than five years ago, indicating a significant downturn in the market [1] - In the first half of this year, the total sales of commercial housing reached only 6.6 trillion yuan, which is less than 40% of last year's total sales of 18.1 trillion yuan, reflecting a substantial drop in developer sales performance [3] Group 2 - Various cities have implemented policies to stimulate the sluggish market, including "price drop limits" in 23 cities, the cancellation of "purchase limits," and reductions in mortgage rates, but these measures have not effectively reversed the market's decline [5] - High-rise residential buildings, once popular, now reveal several drawbacks, such as higher shared area costs, difficulties in emergency evacuations, and low likelihood of future demolition, making them less attractive to buyers [7] - Experts warn that certain types of properties may become "hot potatoes" in a prolonged downturn, prompting savvy investors to start liquidating their assets [8] Group 3 - Small property rights houses, once appealing due to their low prices, now face bleak prospects as their legalization hopes have faded, and they are considered difficult to sell due to safety concerns and regulatory violations [9] - Properties in remote suburban areas, previously favored for their affordability, are now struggling due to inadequate infrastructure and transportation, leading to larger price declines compared to city center properties [9] - Properties in cities experiencing population outflows are likely to see reduced demand and insufficient price support, further complicating the market landscape [9]