China's Property Market Crisis: Hegang's Basement Prices Echo Nationwide

Hegang, a former coal boomtown, has become synonymous with China's property market decline. With average home prices plummeting across key cities, homeowners face significant financial strain. The downturn has not only eroded household wealth but also affected investment plans of developers, exacerbating local economies' fiscal challenges.

Homebuyers in China have long turned to Hegang, a former coal boomtown on the Russian border, for affordable property. Amidst China's intensifying property crisis, the rock-bottom prices of Hegang are now emerging in wealthier regions, posing a new economic threat.

Average home prices have dropped for the 14th consecutive month in many major cities, including Beijing, despite recent policy changes. Social media has buzzed with discussions on the widening property deflation, with hashtags like 'Hegang-isation' gaining substantial traction. In Huizhou, close to Shenzhen, a once-vibrant property market has seen prices plummet drastically, leaving newlyweds like Wendy Ye struggling with heavy mortgage burdens.

China's overarching property slump has slashed household wealth, chilling domestic spending and complicating local governments' financial standings, especially in robust economies like Guangdong. Analysts warn of potential chain reactions that could further hinder the country's economic growth.

(With inputs from agencies.)