Core Viewpoint - Wealthy individuals are increasingly acquiring "staircase houses" despite their age and infrastructure issues, driven by various investment motivations [1][5]. Group 1: Advantages of Staircase Houses - Staircase houses are often located in prime urban areas with comprehensive amenities such as supermarkets, hospitals, schools, and public transport, making them convenient for residents [3]. - The price of staircase houses is significantly lower than that of elevator-equipped houses, and they typically have a higher usable area ratio [3]. - Staircase houses, usually 5-6 stories high, offer better safety in emergencies like fires or earthquakes, allowing for quicker evacuation compared to taller buildings [3]. Group 2: Investment Motivations - Wealthy individuals are purchasing staircase houses to rent them out, generating rental income. For instance, a 38 square meter staircase house in Shanghai's Jing'an District can be bought for 1.8 million, yielding an annual rental income of approximately 50,000, which is more profitable than bank savings [7]. - The potential for property appreciation through urban renewal projects or original reconstruction is a significant draw. Renovations can enhance the property's value, making it easier to sell or rent [9]. - There is also the possibility of demolition and redevelopment, which can lead to substantial returns. For example, a 40 square meter staircase house purchased for around 2 million could yield over 6.3 million in compensation if demolished [11]. Group 3: Market Conditions - The current market sees a decline in staircase house prices, with drops exceeding 30%, leading to a decrease in second-hand property transactions and rental prices [11]. - Despite the potential for high returns, the overall investment risk remains considerable due to the current downward trend in property values and rental income [11].

Core Insights - The article discusses the increasing interest in old, low-rise walk-up apartments, often referred to as "step-ladder houses," due to their affordability and potential for investment returns [2][3]. Group 1: Market Dynamics - There is a notable trend of investors purchasing old, low-rise apartments, particularly top-floor units, which were previously overlooked due to their age and condition [2]. - Prices for these properties are significantly lower compared to newer developments, with examples showing a 30% price difference for top-floor units in Jilin and a 4000 yuan price gap in Shanghai compared to lower floors [3]. Group 2: Government Policies - Various local governments are initiating policies to stabilize the market for old properties, including buyback programs for unsold inventory and incentives for property owners, which enhances liquidity for these previously stagnant assets [5]. - The government has plans to complete the renovation of old residential areas built before 2000 by 2025, focusing on properties with safety concerns, which could lead to increased demand for these old apartments [9]. Group 3: Investment Opportunities - Investors are betting on potential demolition and redevelopment opportunities, as compensation for demolished properties is based on area rather than floor level, leading to high return rates [7]. - Even without demolition, ongoing renovation policies are improving the living conditions and rental values of these properties, with rental income increasing by 15%-20% post-renovation [10]. Group 4: Property Characteristics - Walk-up apartments generally have a higher usable area due to lower common area allocations, making them more attractive to buyers and renters [12]. - Key factors for selecting these properties include location and proximity to essential amenities, which can ensure higher occupancy rates and easier resale [13]. Group 5: Target Demographics - Low total price and small unit sizes make these properties appealing to middle and lower-budget investors, allowing for easier turnover and lower financial risk [15]. - Top-floor units are particularly favored due to their lower prices and potential for high compensation in case of redevelopment, despite the inconvenience of climbing stairs [17].

Core Viewpoint - The article highlights a growing trend among wealthy individuals in China who are investing in "staircase houses" despite a generally sluggish real estate market, driven by potential investment opportunities and returns [1][3]. Investment Potential - "Staircase houses" are seen as having significant investment potential due to a notable price correction in many cities, with average declines exceeding 30%. Investors are targeting these properties for their smaller shared areas and advantageous locations, making them ideal for bottom-fishing in the market [6]. - The ongoing urban renewal initiatives, including the renovation of old neighborhoods, are expected to enhance the value of "staircase houses." Improvements such as exterior painting, plumbing updates, and the addition of elevators will increase living quality and property value post-renovation [6][8]. Rental Income - The stable rental income from "staircase houses" is another key attraction for wealthy investors. With declining bank interest rates and increased risks in stocks and funds, purchasing these properties for rental purposes provides a reliable cash flow. For instance, a 38-square-meter "staircase house" bought for 1.8 million yuan can yield a monthly rent of 4,200 yuan, resulting in an annual income exceeding 50,000 yuan and an investment return rate of 2.8% [9]. Potential for Redevelopment - The potential for significant compensation from future demolition projects is a compelling factor for investors. As urban renewal progresses, properties like "staircase houses" may be included in redevelopment plans, leading to substantial compensation. For example, a centrally located 50-square-meter "staircase house" valued at 2.6 million yuan could receive up to 7.5 million yuan in compensation if included in a demolition area [8].