Core Viewpoint - The real estate market in Xi'an is undergoing significant changes, particularly with the emergence of "fourth-generation" residential properties that boast high usable area ratios, but these come with potential compliance risks due to the nature of "gifted area" that often cannot be registered for property rights [2][4][5]. Group 1: Market Dynamics - The popularity of fourth-generation residential properties is driven by two main shifts: a transition from suburban to urban locations, enhancing their value, and a pricing strategy that includes high registration prices, substantial gifted areas, and real discounts to capture the urban market [5]. - In the context of a cooling housing market, many new developments across various cities, including Xi'an, are offering significant gifted areas, with some projects reporting usable area ratios exceeding 150%, which is relatively rare in the broader market [5][6]. Group 2: Usable Area Ratios - Specific examples of high usable area ratios include a 111.73 square meter unit with a usable area ratio of approximately 111.53%, and a 128.58 square meter unit with a ratio of about 131.27%, while some units even exceed 150% [4][6]. - The trend of increasing gifted areas has evolved, with earlier models offering around 30 square meters of gifted area for an 85 square meter unit, now escalating to claims of 225 square meters usable from a 139 square meter unit [5][6]. Group 3: Risks and Compliance - Experts warn that while high usable area ratios can enhance living comfort and stimulate demand, they also exacerbate market fragmentation, putting pressure on lower-ratio projects and leading to intensified competition [8]. - There are significant risks associated with gifted areas, including potential issues with property rights, as these areas often cannot be included in property certificates, and compliance risks related to government approvals [8][9]. - The market is also seeing a shift in sales narratives, moving from "hot lottery" to emphasizing "sufficient customer base," indicating a potential decrease in future lottery opportunities for buyers [9]. Group 4: Regulatory Environment - National and local policies are increasingly regulating the calculation of usable areas, with recent regulations in various cities aiming to limit the definition and extent of gifted areas, which may shift the focus of competition back to space efficiency and building quality [9].

Core Viewpoint - The real estate market in Xi'an is undergoing significant changes, particularly with the emergence of "fourth-generation" residential properties that boast high usable area ratios, but these come with potential compliance risks due to the nature of "gifted area" that often cannot be registered for property rights [2][9]. Group 1: Market Dynamics - The high usable area ratios in Xi'an's fourth-generation residential properties have led to a market differentiation, with some projects experiencing ratios exceeding 150% [5][6]. - The shift in focus for these properties has moved from larger units (over 120 square meters) to smaller ones starting from 90 square meters, indicating a significant change in market strategy [6][7]. - The pricing strategy involves high registration prices combined with substantial gifted areas, which has allowed these properties to penetrate the central market effectively [6][7]. Group 2: Consumer Behavior and Pricing - The perception of value among buyers has shifted towards the usable area, with examples showing that a property priced at 1.6 million yuan can yield a usable area of approximately 140 square meters, significantly lowering the effective price per square meter [8]. - The competition among developers has intensified, leading to a potential oversaturation of the market with high usable area claims, which may not reflect the actual value of the properties [9][10]. Group 3: Regulatory and Compliance Issues - There are significant risks associated with the "gifted area," including potential issues with property rights and compliance, as these areas often do not appear on property certificates [9][10]. - Recent regulatory changes have begun to impose stricter definitions and limitations on what constitutes "gifted area," which may shift the focus of competition back to quality and actual living value rather than numerical claims [11][12].