In China, the real estate market continues to languish, and the direction it will take in 2025 is drawing significant attention. During this year’s annual sessions of the National People’s Congress and the Chinese People’s Political Consultative Conference, the real estate issue on the mainland became a focal point of discussion. Some homeowners have expressed that even with drastic price cuts, it remains difficult to sell properties, leading to challenging living situations where thoughts of houses and work keep them awake at night.
On March 9th, Minister of Housing and Urban-Rural Development Ni Hong stated during a press conference at the NPC that, based on statistical data, in the fourth quarter of 2024, the sales area and sales volume of newly constructed commercial housing achieved positive growth. Since January and February of this year, the real estate market has shown signs of stabilization after a period of decline.
Nevertheless, on social media platforms, many people have questioned whether housing prices will indeed stabilize this year. Some bloggers argue that given the current situation, it is unlikely for housing prices to stop falling because there are fewer buyers entering the market.
Financial blogger Beigeo mentioned that for housing prices to stop falling, there needs to be normal indicators in the real estate market, with support from the bottom level and prices being undervalued. However, the current reality shows that housing prices are in a state of high levels and bubbles. In such a scenario, it is impossible for prices to stabilize.
He pointed out that authorities claim to support the property market every year, but prices have not been effectively maintained. He believes that no matter how hard they try to support the market, only “leeks” (meaning naive investors) entering the market would make a difference. He explained that leeks are the only ones who invest without expecting returns, while other investors are in it for profits. Ultimately, leeks are the ones who do not require repayment. Therefore, whether leeks do not invest or are unable to invest, it will lead to a lonely outcome. Some individuals hope that the government can stabilize the housing market, but the reality may prove otherwise.
According to a recent report by Housing China Network, the Institute of Living Big Data Research under Lin Ping reported that in February, the average price of second-hand residential properties in 100 key cities was 14,094 yuan per square meter, showing a decrease of 0.15% compared to the previous month and a decline of 5.15% year-on-year. The month-on-month and year-on-year decline rates narrowed by 0.28% and 0.01%, respectively.
The report indicated that since the government’s intervention in September 2024 to “rescue the market,” the rate of decrease in housing prices had been narrowing consecutively for four months. However, at the beginning of 2025, the year-on-year decline rate expanded. In the short term, the market is still dominated by a situation of “price-for-quantity exchange” in the second-hand housing market, and market confidence needs further boosting.
Based on the report, in February, the average price in first-tier cities was 55,453 yuan per square meter, a decrease of 0.24% compared to the previous month and a drop of 3.66% year-on-year. Second-tier cities had an average price of 16,765 yuan per square meter, down 0.11% month-on-month and a 6.06% decrease year-on-year. Third and fourth-tier cities had an average price of 8,954 yuan per square meter, with respective month-on-month decreases of 4.48% and 0.18%.
Turning to social media, blogger Hupiao Laotian shared her experience in selling a house. She and her husband work as programmers in Shanghai. They had purchased a house in their hometown for a total price of 1.28 million yuan, with a down payment of 400,000 yuan. The five-year-old house remained unoccupied and unrented. They have now listed it for sale at 1 million yuan.
She expressed, “This price is almost at my psychological limit. I feel it’s already very low. With a devaluation of 280,000 yuan, plus the monthly mortgage payments over these years, I have mentally prepared for a loss. Even if a buyer offers several tens of thousands less, I can accept it. I feel this price should be enough to attract buyers.”
However, recently potential buyers proposed offers starting as low as 650,000 yuan, equivalent to a 50% discount, with the lowest offer being 550,000 yuan. She immediately rejected these offers, but the real estate agent insisted that the house is only worth that price currently.
“That comment from the real estate agent was like a dagger to the heart; I felt devastated. I couldn’t accept the situation. I ended up vomiting blood, unable to cope with this news. My husband couldn’t sleep that night either, tormented by worry.” She revealed that she and her husband agreed not to inform their parents about this matter, as it would deeply upset them. After all, the down payment for the house was saved by their parents scrimping and saving for a lifetime. Learning that the house would eventually be sold at a loss would be devastating for them.
Why are they selling the house? She explained that as they are approaching their mid-thirties, some of their colleagues have been laid off, and they are living in a constant state of anxiety. With an outstanding mortgage on this property and high rent in Shanghai, consuming two-thirds of their total income, they fear they would lose everything by holding onto this property.
With a heavy heart, she lamented, “As we reach middle age, every step feels arduous. We have elders to care for and children to support, living in a state of anxiety and confusion. At night, just the thought of the house, work, and the future keeps my husband awake. This is why we have decided to sell this house.”
She sadly admitted, “I consider it a miracle if I can sell this house now. I am unsure how much money we will end up with after the sale.”
The plight of “Hupiao Laotian” has sparked heated discussions among internet users, with many sharing their own experiences and insights.
User “Jiangyan Wodefadianjigu Cai Jincun” commented: “Housing prices in Changsha have halved, almost the same in Zhengzhou, and some properties in Shanghai have dropped by more than half!”
“Xiaobeibao Baba” said: “There are many in Xiamen selling at a 60% discount, some even at a 70% discount. It’s better to cut losses while you still can.”
“Yecao” shared: “I bought it for 2 million, paid the mortgage for 6 years, and sold it today for 1.09 million!”
“Da Hu” exclaimed: “If you can’t sell your house in 2025, you might never be able to sell it in your lifetime.”