THE REAL ESTATE MARKET IN THE SECOND HALF OF 2026: PURCHASING POWER FORECAST TO REMAIN UNDER PRESSURE

High Interest Rates Impact Home-buying Decisions

One of the most prominent factors impacting the current market is the cost of borrowing. As mortgage rates have increased compared to the beginning of the year, financial pressure has intensified for both end-users and investors.

To support buyers, many developers have rolled out incentive programs such as interest rate subsidies, extended payment schedules, and flexible payment terms. However, these measures have only helped alleviate short-term financial pressure and have yet to trigger a breakthrough in market liquidity.

Supply Grows but Transaction Volumes Lag

Following the resolution of legal bottlenecks across various projects, the volume of new products entering the market has trended upward. Despite this more abundant supply, absorption rates have yet to meet expectations.

According to market research firms, buyers are now spending more time comparing products, assessing developer credibility, and weighing their financial capabilities before making a decision. Consequently, the sales cycle has become more prolonged compared to previous periods.

Buyers Adopt a More Selective Mindset

The market is witnessing a notable shift in consumer behavior. While many previous transactions were driven by short-term investment demand, today's buyers are primarily focused on long-term ownership or generating actual usage value.

Amidst high interest rates and elevated property prices, many buyers tend to delay their purchasing decisions, waiting for more positive market signals or further financial support policies.

Developers Adjust Development Strategies

Liquidity pressures have prompted many real estate enterprises to revise their business plans. Rather than pursuing widespread expansion, many developers are now focusing on projects with fully cleared legal documentation that are ready for immediate deployment or situated in areas with genuine housing demand.

Concurrently, numerous enterprises are branching out into new segments to diversify their revenue streams and mitigate risks associated with market volatility.

Market Outlook

Market research organizations forecast that the real estate sector will likely continue to experience a highly polarized trajectory in the coming period.

Projects with transparent legal documentation, solid construction progress, strategic locations, and attractive sales policies are expected to hold a stronger competitive advantage in attracting buyers. Conversely, projects with high asking prices that lack distinct product advantages or struggle with delays may continue to face difficulties in improving liquidity.

Investor Perspectives

Amidst ongoing market volatility, investors should prioritize a thorough assessment of a project's legal status, developer credibility, cash-flow generation capability, and long-term growth potential. For end-users, balancing financial capabilities and selecting products that align with genuine housing needs will help mitigate risks while interest rates remain elevated.

This article is compiled from real estate market research reports and public disclosures by industry analysts.

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