Chinese homebuyers and mortgage holders facing declining property values and mortgage payment burden

Chinese consumers are experiencing a mortgage retreat (按揭退潮) as property market conditions deteriorate, leaving homeowners struggling with underwater mortgages, payment obligations on depreciating assets, and uncertainty about refinancing options. Banks are shifting away from retail mortgage lending, making it harder for existing borrowers to restructure loans or access relief, while new buyers face tightening credit conditions. Current banking solutions fail to address the systemic property market decline and lack flexible restructuring options for distressed borrowers.