According to official data reports, in October 2023, prices of private residential properties continued to drop, with a decrease of 2.16%, marking the sixth consecutive month of decline and a cumulative drop of 3.97%, hitting a seven-year low, with an overall decline of 19.27%. This news has sparked public concern and apprehension about the development of the real estate market.

Economists point out that significant factors contributing to the decline in property prices include the pandemic and rising interest rates. The economic recession triggered by the pandemic and disruptions in population and capital flows have negatively impacted the real estate market and prices. Additionally, the continuous rise in mortgage rates has increased the burden on homebuyers and decreased their willingness to purchase residential properties.

Looking back over the past two years, the real estate market has experienced continuous declines in property prices, providing affordable home buying opportunities for those in need. However, the market has also been impacted by adverse factors such as stock market crashes and unfavorable economic prospects. Many people have therefore chosen to adopt a cautious approach, postponing their home purchase plans, which has had a certain impact on the entire market.

The reasons for fluctuations in property prices are multifaceted and far-reaching. For example, since September, major banks have raised mortgage rates for new developments by about 0.5 percentage points. The current level of interest rates remains relatively high. Additionally, government policies have also affected the market. The release of the Policy Address has relatively cooled down market transactions, and some homeowners have been forced to lower prices to facilitate transactions. These factors collectively constitute sources of pressure for the decline in property prices.

A senior real estate expert offered his insights: the decline in property prices is obviously good news for buyers, but attention should also be paid to the potential risks of negative assets it may bring about. Therefore, he advocates for the government to cautiously revise cooling measures to rebuild market confidence.

Many netizens have discussed this topic enthusiastically on social media platforms, expressing their respective attitudes. Some warmly welcome the decline in property prices, seeing it as an ideal opportunity to purchase real estate; while others worry that the decline in property prices may trigger more negative asset issues and hope that the government will step in to stabilize the housing market.

Looking ahead, economists predict that although the downturn in the property market in November may be slightly eased, it is expected to continue to decline by 1.8%. In December, residential developers may introduce price discounts, further reducing prices by about 1%-1.5%. Overall, property prices in the fourth quarter are expected to decrease by 5% year-on-year, with the annual decline potentially reaching a significant 7%.

The trajectory of the real estate market has profound implications for culture, society, and industries. Consumers may be able to purchase properties during downturns, but they also need to bear the risk of declining net assets. Meanwhile, the leasing industry is experiencing rent hikes due to imbalances in supply and demand, and other industries such as leisure and entertainment are affected by the decline in consumer purchasing power.