Property prices in Shanghai see a rebound, yet the national real estate market in China is still grappling with significant challenges. A staggering 90 million apartments remain empty or unfinished, creating a substantial overhang in the market.

During China’s ongoing housing crisis, there have been short-lived periods of price stability. These temporary pauses have often led to renewed declines, dashing hopes for recovery.

Earlier this year, housing prices in some major Chinese cities appeared to stabilize. This led to debates among analysts and economists. Some believe the market has hit a bottom, while others see this as merely another pause before further downturns.

Data from UBS and Centaline show average prices for existing homes in Tier 1 cities like Beijing, Shanghai, Shenzhen, and Guangzhou increased by 2% from February to April. This comes after a dramatic 38% drop since 2021, affecting both China’s and the global economy.

“Many Chinese families invested heavily in real estate, seeing it as a safe investment avenue for growing wealth. However, the market crash revealed vulnerabilities.”

Take Timothy Liu, an office worker in Henan Province, as an example. In 2021, he purchased a small apartment for about $76,000. Since then, the property’s value has declined by nearly a third. Liu is also grappling with job loss and economic instability attributed partially to the housing market’s woes.

Liu feels fortunate not to have taken a large mortgage for a property in a first-tier city. Yet, he is disappointed, noting, “Although I managed to avoid taking on a huge mortgage in a first-tier city, my apartment has still dropped in value by nearly 30 percent.”