Core Insights - The real estate market in first-tier cities is experiencing unprecedented differentiation, with high-end properties seeing increased demand despite overall market downturns [3][11] - A significant psychological shift among buyers has occurred, moving from investment-driven purchases to a focus on quality of living [4][10] Market Trends - In the first quarter of 2025, transactions for second-hand homes in Shanghai across price segments of 6-8 million, 8-10 million, and 10-30 million yuan showed both month-on-month and year-on-year increases [3][9] - The second-hand housing market in Shenzhen saw a staggering 94% year-on-year increase in new listings in August, the highest among first-tier cities, while Shanghai also reported a 51% increase with 15,500 new listings [3] Buyer Behavior - Buyers are increasingly prioritizing quality living over potential price appreciation, as evidenced by a customer who upgraded from an older suburban property to a high-end apartment in the city center [4][10] - The proportion of transactions for properties over 140 square meters in Beijing, Shanghai, Shenzhen, and Hangzhou is steadily increasing, indicating a shift towards larger, higher-quality homes [4][5] Property Characteristics - Three types of properties are gaining popularity: high-quality luxury homes in core areas, "middle-aged luxury" homes built between 2014-2019, and low-priced older homes with irreplaceable locations [6][7][8] - The share of luxury homes priced over 10 million yuan in Shanghai is showing signs of recovery, indicating sustained demand in the high-end market [6] Market Dynamics - The differentiation trend is intensifying, with the proportion of listings for high-end and low-end properties increasing, while mid-range listings are declining [9][12] - The real estate value system is undergoing reconstruction, with buyers redefining what constitutes a "good property" based on factors like location, quality, and amenities [10] Future Outlook - The high-end market is expected to remain robust due to ongoing demand for quality housing in core locations, while pressure on the entry-level market is likely to increase [11] - The disparity between core urban areas and suburban regions is expected to widen, with core areas continuing to attract buyers while suburban properties struggle to sell [12]