The market of the property market is moving toward the future

In the first half of November, Beijing witnessed a noticeable uptick in new residential sales, with 3,911 units signed, averaging 391 contracts per day. This represents a 23.6% increase compared to the daily average for October, indicating robust demand despite occasional supply shortages. However, in lower-tier cities like Wenzhou, the real estate market appears to be struggling. Prices have dropped significantly, leading to a potential inventory crisis, particularly noticeable since September. According to Guo Yi, Director of Institutional Marketing at Yahao, regional disparities play a crucial role in shaping these trends. Major cities like Beijing attract global investors, while smaller cities rely heavily on local buyers. Yet, Zhang Dawei, Director of the Central Plains Real Estate Market Research Department, expressed skepticism over selective data interpretation. He emphasized that while certain cities face inventory pressures, this does not equate to a nationwide downturn. Many second-, third-, and fourth-tier cities have experienced modest price declines, far less dramatic than those seen earlier this year. Furthermore, comparisons between large and small cities should avoid using the vigor of top-tier markets as a benchmark for assessing conditions elsewhere. These contrasting dynamics highlight the growing divide within China’s property landscape, sparking debates about its current state and future trajectory. Guo Yi argued that the upward trajectory of property prices in major cities remains inevitable due to their resource advantages—such as superior infrastructure, healthcare, and educational facilities. Consequently, he believes this dualistic development pattern will persist for the foreseeable future. Meanwhile, Zhou Biwen, Director of the Beijing Institute of Technology’s Real Estate Institute, noted that recent government initiatives aimed at boosting affordable housing could help stabilize prices moving forward. Since 2009, over 21 million units of subsidized housing have been constructed nationwide, with nearly half completed. This expansion has increased affordable housing coverage from under 4% in 2008 to 11%, signaling progress toward sustainable growth without excessive volatility. As policymakers strive to balance affordability with market stability, the debate continues regarding how best to address regional inequalities while fostering long-term prosperity across all tiers of urban centers. While challenges remain, many experts agree that steady growth rather than rapid fluctuations offers the most promising path forward for China’s real estate sector.