How is China's real estate decline affecting the middle class?

China's underperforming real estate market is significantly impacting its middle class population. Property income, which forms a crucial component of household earnings, is declining, indicating asset depreciation for numerous homeowners across the country. This financial setback is particularly concerning as property has traditionally been a key wealth-building mechanism for China's middle class. The diminishing returns from real estate are contributing to weakened consumer confidence and creating financial strain on middle-class households who have invested substantially in property.