At present, the buying, selling and leasing of real estate in China are very distorted, which not only means that it is unreasonable to rely on rent to profit from real estate investment, but also shows that the long-term leasing market has not effectively replaced the real estate market, and most people are still willing to buy their own houses. This is because people are too willing to buy houses, which leads to such extreme situations in the real estate buying, selling and leasing industry in China.
Generally speaking, the long-term rental housing market should account for 30%~40% of the whole real estate market, because many people can actually rely on long-term rental housing to replace the demand for buying houses. If the final long-term rental housing market in China becomes more and more mature, then people's ideas must have changed, and only in this way can house prices be structurally lowered. On the other hand, when the urbanization process reaches a certain stage, small and medium-sized cities or third-and fourth-tier cities can share the pressure of population inflow in big cities, and then house prices will gradually decline.
If the whole property market is in a stable state, then the trend of housing prices in some cities is divided, which is very normal, because the real estate market is separated from each other. In the past, some third-and fourth-tier cities experienced excessive construction under the real estate boom, resulting in oversupply, so the downward pressure on housing prices in these cities was relatively large, while after the transformation of other cities, economic growth could not come up, resulting in a decrease in population inflows, so housing prices in these cities may also decline.