China's cities adapt to shifting housing market trends

China is changing its approach to the housing market as it faces economic challenges. The government aims for a growth target of around 5 percent amidst concerns about the property sector. In Harbin, a city in northeastern China, residents like Zhao Yuchun express regret over their property investments. Zhao bought his flats in 2018, hoping to profit from rising prices. But now prices have dropped significantly since they peaked in 2021, leaving many homeowners feeling stuck. With property making up a large part of household wealth, this decline affects people's spending and confidence. Younger generations are particularly impacted. Many young people now rely on their parents for help in buying homes. However, with wages stagnating and prices high, they are starting to rethink the importance of home ownership. Some young adults regard renting as a better option, focusing more on enjoying their environment rather than just acquiring property. Despite the downturn, some cities still see increases in property sales. For instance, first-tier cities experienced rising sales in January. Lower-tier cities are trying to attract buyers with incentives like job offers and free public transport. One innovative solution is a housing trade-in scheme launched in Wuxi, a city near Shanghai. Residents from nearby cities can exchange their old properties for new ones, making it easier to find suitable housing. This approach could inspire other cities facing similar challenges. As competition for homebuyers grows, local governments are adopting strategies to attract younger people and boost their economies. Experts predict that these changes may reshape the housing market in significant ways as attitudes toward ownership continue to evolve.