Part 2/6:
The primary catalyst for this downward trajectory is the significant drop in rental income. In December, average rent across 50 major cities decreased by 3.3% year-on-year, with Beijing bearing the brunt of a steeper 5.4% decline. This ongoing slump in rental prices underscores the broader pressures facing China's real estate sector, including high debt levels and the insolvency of major developers. Consequently, property sales by floor area have decreased by 12.9% as of 2024, reinforcing the notion that the real estate market is underperforming during a critical period for the economy.