The Chinese property market continues to slump, with house prices plummeting sharply across the country. In Harbin, Heilongjiang Province, a house purchased for 1.2 million yuan by a resident failed to sell even after a 50% price drop. Real estate agents stated that with an increasing number of houses and a decreasing population, property prices are only expected to decrease further. In Wuhan, residents faced with job layoffs are under immense financial pressure and are forced to sell their homes. A house bought for 2.6 million yuan was eventually sold for 1.4 million yuan as the owner could no longer sustain the financial burden.
In a recent post, a Harbin blogger known as “Strawberry Mango Watermelon” revealed that a house purchased in a prime location in 2018 for 1.2 million yuan now struggles to attract buyers even with a 40% price reduction to 800,000 yuan. Despite an interested buyer offering 600,000 yuan, the blogger refused the deal, mitigating a significant loss. The blogger expressed disbelief at the devaluation of properties in a span of merely six years.
Another blogger from Wuhan, Xiao Wang, shared his experience of selling a house bought for 2.6 million yuan for just 1.4 million yuan recently. He lamented the substantial financial losses incurred, attributing the decision to severe economic pressures resulting from job loss amid the pandemic. Xiao Wang initially saw the purchase as an investment due to Wuhan being a prominent city and secured the property by combining savings, parental assistance, and a mortgage.
With unexpected job loss and economic downturn, Xiao Wang faced a grim reality of struggling to make ends meet with a significant monthly mortgage payment of 8,000 yuan. Despite efforts to find alternative employment, he experienced setbacks in securing stable work, even resorting to venturing into a failed business partnership in the hopes of higher earnings.
Subsequently, Xiao Wang resorted to working in food delivery, barely making enough to cover the mortgage while accruing credit card debt. With reduced household income and mounting financial pressures, Xiao Wang and his family faced hardships, eventually deciding to sell the house to alleviate the burden. Despite reducing the initial asking price from 2.5 million yuan and enduring over a year on the market, the property was eventually sold for 1.4 million yuan, culminating in immense financial strain and a sense of defeat.
Xiao Wang’s poignant narrative sheds light on the harsh realities faced by many Chinese homeowners amidst the prevailing challenges in the property market and broader economic landscape. The anecdotes reflect the profound impact of the property market downturn and economic uncertainties on individuals and families, underscoring the urgency for sustainable solutions to address the growing housing crisis and financial instability plaguing many across the country.