Official Claim of Rising First-Tier Housing Prices Sparks Public Backlash

In the areas surrounding Shanghai, the prices of second-hand homes have plummeted, now at only one-third of their original value, and in some cases, even just one-quarter. (Video screenshot)

[People News] The National Bureau of Statistics of the Communist Party of China recently released data on the changes in sales prices of commercial residential properties in 70 large and medium-sized cities for August. The report emphasized that "the prices of new and second-hand homes in first-tier cities have both risen by 0.1% month-on-month."

Following the announcement of this "0.1% increase," the label "housing prices in first-tier cities have risen" quickly climbed to the top of Weibo's trending topics. However, despite the official's attempts to create a "recovery signal," the Chinese public not only dismissed it entirely but also sparked a wave of collective mockery online regarding the manipulation of statistical data and the stark economic reality.

Netizens expressed their immediate reaction: "While the news touts a recovery in housing prices, the reality is that prices are quietly being sterilized."

Homeowners in Beijing and Shanghai directly challenged the official narrative: "In the second-hand housing community next to my home, prices have dropped by 30% over the past two years, with unit prices falling from 80,000 to 50,000 and still not selling. In which parallel universe were the official statistics compiled?" Some netizens even astutely pointed out the authorities' statistical sleight of hand: the transaction volume has plummeted by 80%, and as long as a few high-priced luxury homes are occasionally signed online, the average price can be claimed to have risen, "redefining the increase, which is merely a tactic to lure the last batch of investors into the market to take over the losses."

In the comment sections of news related to Weibo and Xiaohongshu, netizens have shared sharp and darkly humorous remarks: 'Official data is meant to maintain confidence, while the private housing market teaches you how to live.' 'When the news reports that housing prices have stopped falling, it indicates that the real crash has just begun; when it says that first-tier cities are seeing price increases, it means local finances are already desperate enough to consider drastic measures.' 'Previously, it was about 'wealth through demolition,' but now it's about 'poverty through home buying.' Houses are no longer seen as assets but rather as shackles that ordinary people wear around their necks, cutting into their flesh.'

Many netizens have pointed out that, in reality, the second-hand housing market has long been in an extreme winter characterized by 'fire sales' and 'liquidity drying up.' Real estate agents are constantly pressuring homeowners to 'slash prices by half,' while many are facing unemployment and salary cuts, making it impossible and unwise to take on a 30-year mortgage, with some saying, 'Selling a house still leaves you in debt to the bank!'

Several prominent Weibo users and media figures have also taken to social media to counter official narratives. Influencer 'Yuan Sanjin' sarcastically commented, 'In the dead of winter, it only warmed up for one day; we can't say spring has arrived.'

Influencer 'Cai Leilei' also emphasized that trends cannot be declared reversed based on a single month's data rebound.

Geng Xiangshun, founder of 'Zhi Xin Youth,' directly presented four reasons, sharply criticizing the 'complete lack of possibility for housing prices to rise': First, changing attitudes among the youth, with trends of not marrying and not having children leading to a total collapse of housing demand; second, the deteriorating economic and employment environment makes people hesitant to take on large mortgages; third, those who can afford to buy have already saturated the market, while those who cannot afford it will not buy even if prices rise slightly; fourth, survival in big cities is becoming increasingly difficult, prompting people to return to small and medium-sized cities.

He expressed his deeper concern for his friends who bought homes around 2021, as they are now struggling to pay their monthly mortgages while housing prices have already dropped significantly. Even if they sell their properties, they still owe money to the bank.

From 'relocation recovery' to 'falsification of housing price data', the authorities are continuously using 'statistical narratives' to promote the Chinese economy in order to maintain fiscal credibility and revenue from land sales. This reflects the collective anxiety of local governments that are unable to sell land and fulfill city investment bond obligations.

As some netizens have pointed out: 'Official data is meant to maintain confidence, while private housing prices teach you how to navigate life.' Influential figures and the public have voiced their collective outrage, stating that the government is exploiting the last of the 'leeks'! 'There aren't enough leeks left; even uprooting them won't fill the debt gap.' 'You can shout about your price increases, but I’ll keep my wallet closed; let’s see who can endure longer.' 
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