A recent survey conducted by UBS Evidence Lab in April has revealed a concerning trend in China's housing market. The proportion of homeowners who report being in a deficit on their properties has increased significantly, from 29% in September 2024 to 47% in the latest survey. Conversely, the percentage of homeowners who report being in a surplus has decreased to 30%. This negative wealth effect is particularly pronounced in second- and third-tier cities, where homeowners are predominantly in a deficit. In contrast, homeowners in first-tier cities still maintain a small surplus. UBS believes that the negative wealth effect may continue to exert pressure on consumer spending.
**Source:** [FinGraph Financial Charts](https://x.com/fingraph66/status/1935365891144687913)