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]