In recent news from Anhui Province, Mr. Hu from Hefei City sold a house he purchased six years ago for 553,000 yuan, which is significantly lower than the 1.158 million yuan he originally paid for it. Not only that, but Mr. Hu still owes the bank 260,000 yuan after selling the house. There has been a growing trend of people selling their properties at lower prices, with some even having to take out further loans in order to sell their houses.
According to a report from Red Star News on November 26th, Mr. Hu bought a property in Feixi County, Hefei for 1.158 million yuan in December 2019. He had to borrow 200,000 yuan from family and friends to make up the down payment and then took out a bank loan of 868,000 yuan.
By 2024, the listed price of his house had dropped to 850,000 yuan. In April this year, Mr. Hu finally sold the house for 553,000 yuan, receiving 540,000 yuan after deduction of agency fees. In order to repay the remaining 800,000 yuan mortgage balance, he borrowed an additional 260,000 yuan from relatives and friends. He is still repaying the loan.
Mr. Hu mentioned, “Including taxes, bank loan interest, I lost about 850,000 yuan.”
Similarly, Mr. Pan from Chongqing sold his house in Shapingba District in July. He bought the house for 1.13 million yuan in August 2021, and eventually sold it for 698,000 yuan. He still had a remaining mortgage of 720,000 yuan, which he also needs to repay to the bank.
Regarding the recent trend of selling houses at a loss in mainland China, Xue Hongyan, a special research fellow at Su Bank, explained to the media that in recent years, some cities have experienced significant declines in property prices, leading to situations where the market value is lower than the remaining loan principal, creating a scenario of insolvency. Overleveraging by some homebuyers has exacerbated the financial risks associated with buying houses, and unexpected events such as job changes and income decreases have further strained financial resources, ultimately leading some homebuyers to sell their houses at a loss.
Instances of selling a house and having to pay off the remaining bank loans are not uncommon in cities like Beijing, Shenzhen, and Hangzhou.
Housing industry analysts have pointed out that some high-end homebuyers are now facing difficulties with their mortgage loans. Some individuals are trying to bridge the gap through loans from family and friends or bridge loans, transitioning from taking out loans to buy houses to taking out loans to sell houses.
The core concept of “selling with a loan” is that the house is sold for less than the loan amount, and the owner has to make up the difference out of their own pocket. For those without cash on hand, they turn to consumer loans, credit loans, and even seek the help of intermediaries for “bridge loans,” all with the goal of successfully selling the house.
The trend of selling houses with loans reflects not only changes in the overall environment of China’s real estate market but also highlights structural changes in the entire real estate market. The fantasy of making a stable profit from buying houses has been shattered.
Regarding future trends in housing prices, a research report from China International Capital Corporation mentioned in the “2025 Outlook” that the real estate market will be in a “moderating decline” phase. In response to this, some analysts believe that there is still a long way to go before housing prices reach stability, and the current challenges are not the end point.
Data from the China Index Research Institute shows that in October 2025, the average price of second-hand houses in 100 cities nationwide decreased by 7.6% compared to the previous year. As of October this year, Chinese housing prices have been declining for 42 consecutive months.