The real estate market has always been up and down and now with the rapidly increasing inflation people can't afford to buy the house like they used to be because the salary isn't appreciated along with the inflation that created imbalance in the system that will take time to be corrected.
Maybe the Chinese government needs to work on their interest rates for better solution than using the perky ways which obviously not effective in my opinion.
China's inflation rate is between 0.3% and 0.6% on a yoy basis.
You're mistaken the problem here, it's not that houses are not affordable or prices are up, it's that Chinese people don't want to buy anymore because of oversupply, a possible deflation on the horizon, the attractivity of an investment going down, migration policies and a change in lifestyle where the mandatory house before getting married is no more needed since they don't marry at all, with a decline of over 10% over pre covid numbers.
And China needs real estate prices to go up since it's a huge chunk of their GDP and income!
China got old before getting rich, they don't have the money for grandiose investments and they don't have the need for an oversupply of things that nobody is interested in.