Starting in March 2023, China's real estate market has entered a correction cycle, and housing prices have begun**, bringing a series of problems and pressures to families with two properties. This trend was predicted by Li Ka-shing in 2018, but society did not pay much attention to it at the time. However, today's situation is exactly the same as what Li Ka-shing said, many families with "two suites" are facing problems such as continuous housing prices, difficulties in selling houses and increased pressure to hold houses.
One of the results of the real estate market correction is the ** of house prices. Whether it is a first-tier city or a small and medium-sized city, the bigger the housing price bubble, the greater the risk of being burst. In Shanghai, for example, housing prices in old residential areas in the central city have risen from more than 100,000 square meters in 2021 to 6-70,000 square meters. This shows that even in central cities, housing prices are in**. For families with "two homes", this means that they will face the distress of continuous housing prices and shrinking assets.
The ** of house prices is a huge blow for families with two properties in hand. They originally hoped to buy a house for the purpose of preserving and increasing the value of their assets, but now they are facing the reality of shrinking assets. The ** of house prices means that their wealth is reduced, their investment income is reduced, and the room for future appreciation becomes limited. This can lead to an impact on their financial status and financial well-being, which may necessitate a readjustment of the family's financial planning and lifestyle.
With the price of goods**, many families who own two homes will choose to sell their homes to avoid losses in time. However, the number of second-hand housing listings in various places has increased sharply, especially after the implementation of the policy of "recognising houses without loans" in first-tier cities, the number of second-hand housing listings has surged. For example, the number of second-hand housing listings in Beijing has exceeded 150,000, and the number of second-hand housing listings in Shanghai has reached more than 180,000 units. At the same time, due to the impact of the epidemic, many people's incomes have decreased, and the demand for families to buy houses has also decreased. This leaves families with two homes facing the dilemma of having a house that is difficult to liquidate.
Faced with the constant increase in housing prices and the surplus in the market, families with two properties have become anxious. They need to face an important problem: how to convert their property into cash. However, the competition for second-hand homes in the market is fierce, with a significant increase in listings and a decrease in purchasing power. This has led to a dilemma where the house is difficult to sell. They may have to lower their selling prices, accept higher discounts, or even have to wait longer to find a buyer. All this caused them a lot of distress and stress.
In addition to facing house prices** and the difficulty of monetizing a home, families who own two homes also face various costs and pressures of owning a home. Holding two or more properties means paying more each month, such as strata fees, heating bills, repairs**, etc. These fees are there every year** and are not waived regardless of whether the house is vacant or not. Especially after three years of the pandemic, families with reduced incomes or unemployed are facing huge mortgage repayment pressure and financial burdens.
Families with two properties not only have to deal with the pressure of house prices** and not being able to sell their homes, but they also have to deal with the various costs and financial burdens that come with owning a property. The monthly utility fees, heating bills, repairs**, etc. are all additional expenses. In addition, with the social and economic instability and the uncertainty of the employment situation, many households have reduced their incomes or lost their stable economy**, which has led to rising pressure to repay loans. They have to face the pressure of housing and the financial difficulties of their families.
The real estate market correction predicted by Li Ka-shing in 2018 is fully validated by the current housing prices**, the difficulty of liquidating houses and the rising pressure to hold houses. For families with two homes, there are bound to be three outcomes in the future: housing prices continue to shrink and assets shrinkThe house is difficult to cash in, and it cannot be sold;The cost and stress of owning a property continues to increase. These realities have created huge problems and distress for them, and they need to adapt and deal with them. For the real estate market as a whole, this adjustment cycle has also brought thinking and reflection on policies and markets, which requires all parties to work together to find suitable solutions.