Core Viewpoint - The article discusses the challenges and potential of China State Construction Engineering Corporation's (CSCEC) new luxury residential project in Shanghai, questioning whether it can succeed in a competitive market despite lacking experience in high-end property development [1][3][11]. Market Context - The recent policy changes in Shanghai, particularly the "Six Policies," have created a favorable environment for property sales, especially in the outer ring areas, but the project in question is located in the inner ring, raising questions about its market appeal [3][9]. - The average price of the new project is 146,800 RMB per square meter, which is not competitive compared to established properties like the Danning Jinmao Mansion, which has a strong reputation and price stability over the years [3][5]. Company Background - CSCEC has primarily focused on projects in the outer ring areas of Shanghai, with no prior experience in independently developing high-end residential properties in the city center, which may pose risks in meeting the expectations of discerning buyers [3][5][11]. - The company has a history of significant projects in Shanghai, such as the North Square of Shanghai Railway Station and the Huangpu Old Town renovation, which demonstrate its capability in urban construction and complex project management [5][11]. Customer Insights - For improvement-oriented buyers, location and construction quality are paramount, and CSCEC's state-owned enterprise background and experience in central urban projects may serve as an implicit endorsement of quality [7][9]. - The recent policy adjustments have indirectly expanded the potential buyer base by lowering barriers for non-local single buyers and optimizing credit and tax policies, which could benefit the project despite its location [9][11]. Strategic Positioning - CSCEC's strategy appears to be a gradual upgrade, having first established a presence in the outer ring before moving into the core area, which allows for resource accumulation and local market understanding [11]. - The company's approach to navigating the Shanghai market reflects a focus on deepening its presence rather than merely expanding for scale, which is crucial in a fluctuating real estate environment [11].