Part 3/14:
What makes this situation particularly concerning for policymakers is the divergence between new and resale property markets. While new home prices in some top cities saw marginal decreases of only 0.3%, resale prices have fallen sharply—Beijing’s resale market dropped 11% and Shanghai’s by 13% year-over-year, reaching multi-year lows. Interestingly, Guangzhou defied the decline trend, experiencing falling prices but rising sales, likely due to policy adjustments removing price caps and stimulating demand for new developments.