What will the future direction of real estate look like? Two trends are emerging. In the medium to long term, location, liquidity, and supporting resources will become the core benchmarks for property value retention. The nationwide trend of price increases is no longer existent.

The first trend is that the market has stopped falling and is stabilizing. According to the latest data from the China Index Academy, in July, the average price of new residential properties in 100 cities reached 17,229 yuan per square meter, a month-on-month increase of 0.26% and a year-on-year increase of 2.09%. In the short term, multiple incentives such as down payments, interest rates, taxes, and provident fund policies are stacking up, and the pent-up demand from first-time buyers and those looking to improve their housing will gradually be released, leading to a steady rebound in the transaction volume of commercial properties and second-hand homes nationwide. In the medium to long term, factors such as location, liquidity, and supporting resources will become the core benchmarks for property value retention, and the nationwide rise in prices will no longer exist. The second trend is the increasing polarization among cities. Recently, there has been an increase in high-quality land plots offered for sale in core cities, and the land premium rates are rising, leading to persistent polarization among cities, districts, and properties. The real estate value dividend will be concentrated in the core areas of first- and second-tier cities where there is a continuous influx of population, a well-developed industry, and complete educational, medical, and transportation facilities.