Core Insights - The demand structure in Shanghai's rental market is undergoing significant changes, with an increasing preference for larger apartment types, particularly two and three-bedroom units, indicating a rise in family-oriented rental needs [1][3][5] - Shanghai leads the national rental market, with a diverse demand landscape driven by policy guidance and market needs, resulting in a substantial scale of approximately 410,000 units in centralized apartments by July 2025 [2][12] - The rental market is transitioning from a phase of scale expansion to structural optimization, reflecting a more mature market with stable demand from families and high-end service apartments [12] Demand Trends - The market share of two-bedroom and larger units in centralized apartments reached 44.6% by June 2025, a 7.1 percentage point increase from the previous year [3] - The proportion of two-bedroom units specifically increased by 5.1 percentage points year-on-year, highlighting a shift towards larger living spaces [3][4] - Over 55% of new centralized apartment projects opened in 2024 featured two and three-bedroom configurations, with a significant portion focusing on two-bedroom units as the primary offering [5] Rental Preferences - The trend of "renting instead of buying" is becoming more common among families, as larger, well-equipped units better meet their needs in a market where real estate is viewed primarily for living rather than investment [8] - Younger renters are shifting their priorities from cost-effectiveness to comfort, preferring whole-unit rentals over shared accommodations, indicating a change in living standards [8] Rental Pricing Dynamics - Overall rental prices in Shanghai are under pressure, with the average rent per square meter for personal housing at 101.83 CNY, reflecting a 1.77% month-on-month decline and the largest year-on-year drop among 55 cities [9] - Despite the overall decline, high-end service apartments are experiencing stable demand and rising rental prices, particularly from high-net-worth individuals seeking premium living conditions [9] - The demand for high-end features, such as smart home technology and concierge services, is increasing among affluent renters, who also expect high-quality surrounding amenities [9]