Core Viewpoint - The real estate market in Chengdu is experiencing significant changes, including new policies aimed at promoting stability and health in the market, as well as fluctuations in transaction volumes for both new and second-hand properties [7][8]. Group 1: Land Market - No residential land was sold in Chengdu this week, but five residential land plots are scheduled for auction on August 8, covering a total area of approximately 210.8 acres [2]. Group 2: Transaction Data - Chengdu's new housing transactions from July 17 to July 23 showed a total of 1,272 units sold, with a total area of 34,165.33 m² on July 17, peaking at 36574.02 m² with 289 units sold on July 23 [3]. - The total number of second-hand housing transactions in Chengdu for the same period was 4,968 units, with a total area of 473,342.07 m², indicating an increase compared to the previous week [4]. Group 3: Pre-sale Information - A total of 21 pre-sale permits were issued in the greater Chengdu area this week, with 10 projects including residential units. Notably, a project in Longquan District launched six batches of units, with prices around 3 million yuan, which sold out quickly [5]. Group 4: Major Events - Chengdu's new real estate policy, effective from July 21, includes 17 measures to enhance market stability, such as gradually lifting housing sales restrictions and reducing the down payment ratio for second homes to 20% [7][8]. - The People's Bank of China reported a slight increase in real estate loan growth, with a total balance of 53.33 trillion yuan, reflecting a year-on-year growth of 0.4% [9]. - A report indicated that financing for 65 typical real estate companies reached 46.442 billion yuan in June, marking a new high for 2025, amidst ongoing debt restructuring efforts [10].

Core Insights - The value of low-rise buildings with potential for elevator installation in prime locations may surpass that of new elevator-equipped buildings in suburban areas [3][12] - Key factors influencing this valuation include location, renovation potential, and holding costs [3][5] Location - "Location is king" remains a timeless principle in real estate; for instance, step-up buildings in central Beijing from the 1990s have seen compensation prices reach 80,000 yuan per square meter, while elevator-equipped buildings in the same area only increased by 3% [3] - The convenience of older step-up buildings, often located near essential amenities, significantly enhances their value compared to suburban elevator buildings [3][4] Policy Benefits - Recent regulations from the Ministry of Housing and Urban-Rural Development emphasize the installation of elevators in older communities, with subsidies covering up to 45% of installation costs [4] - The price of step-up buildings with newly installed elevators can increase by 10%-20% in first-tier cities, while elevator-equipped buildings have seen a price drop of 12% [4][10] Renovation Potential - Not all step-up buildings can benefit from policy incentives; those over 30 years old or with divided owner opinions may face challenges in elevator installation [5][10] - Buyers should prioritize step-up buildings with high renovation potential and community support for upgrades [5] Holding Costs - Elevator-equipped buildings typically have a higher shared area (25%-30%) compared to step-up buildings (10%-15%), leading to higher overall costs for buyers [6][7] - Maintenance costs for elevators can be significant, with average monthly property fees for elevator buildings at 4.2 yuan per square meter, compared to 2.3 yuan for step-up buildings [7] Market Trends - Younger generations, particularly those born in the 1990s, are increasingly open to purchasing low-rise step-up buildings if they are in desirable locations and reasonably priced [8][9] - The liquidity of step-up buildings in prime locations remains strong, with a higher proportion of cash purchases compared to elevator-equipped buildings [10] Future Outlook - The value differentiation between elevator-equipped and step-up buildings is expected to intensify over the next five years, with prime step-up buildings becoming increasingly sought after [11][12] - Buyers with limited budgets are advised to consider low-rise step-up buildings in core areas, especially those included in renovation plans, while those seeking quality may opt for newer elevator buildings, keeping in mind the higher long-term costs [12]