Core Viewpoint - The luxury real estate market in Shanghai is experiencing significant growth, leading to an increase in overall housing prices, despite a general decline in new residential sales prices in other first-tier cities [1][4]. Group 1: Market Performance - In May, new residential sales prices in first-tier cities fell by 0.2% month-on-month, while Shanghai saw a 0.7% increase, with a year-on-year growth of 5.9% [1]. - The strong performance of Shanghai's new housing prices is attributed to the influx of high-end properties, which has attracted high-net-worth individuals and boosted market activity [1][4]. - The average price of new homes in Shanghai reached a historical high of 90,691 yuan per square meter in May, marking a 24.8% month-on-month increase [4]. Group 2: Luxury Market Dynamics - The luxury market in Shanghai has become a norm for "daylight" sales, with several high-end projects experiencing overwhelming demand, such as the Sunac Shanghai No. 1 Courtyard, which had over 200 groups of buyers for 128 units [2]. - The number of luxury homes priced above 50 million yuan sold in the first half of the year reached 518 units, double that of the same period in 2024 [3]. - The luxury market's appeal is increasing due to a shift in investment towards assets that offer value preservation and risk defense amid broader market adjustments [3]. Group 3: Land Costs and Future Outlook - The cost of land in Shanghai is rising, with core area land prices surpassing 120,000 yuan per square meter following the removal of price caps on land auctions [5]. - The upcoming land auction in July is expected to include several prime residential plots, with some analysts predicting that prices could exceed 200,000 yuan per square meter [6]. - Despite the active luxury market, there remains a distinction between new and second-hand homes, as well as between luxury and affordable housing, indicating a segmented market response [6].