Core Insights - The new housing market in Shanghai is witnessing a shift towards larger three-bedroom units, while the existing smaller three-bedroom units are losing value due to low cost-effectiveness [1][3] - The demand for larger four-bedroom units is increasing, particularly among families with multiple children, but the supply remains limited [4][21] - The market for second-hand four-bedroom units is struggling, with a low listing rate and high supply-demand ratio, indicating a mismatch between supply and buyer interest [5][8] Group 1 - The proportion of families with two or more children in Shanghai is around 30%, despite low overall birth rates [4] - The supply of second-hand four-bedroom units is limited, with their listing rate never exceeding 7% in the past five years [5][6] - The average transaction volume for second-hand four-bedroom units is significantly lower than that of two and three-bedroom units, with only 1 out of every 4.7 units listed being sold [8][10] Group 2 - New four-bedroom units are increasingly scarce, with their proportion in new housing transactions rising to 17% in 2024 [21][23] - The demand for larger units is a growing trend, with a notable increase in the price of large units (over 144 square meters) in the second-hand market [24][25] - New four-bedroom units are characterized by better design and functionality, making them more appealing to buyers [26][28] Group 3 - The new four-bedroom units are designed to meet the needs of modern families, with a focus on spaciousness and usability [28][35] - The market is seeing a clear divide between the stagnant second-hand market and the thriving new housing market, with the latter showing strong demand for larger units [37][38] - The trend suggests that four-bedroom units may soon become a new standard for "just need" housing, especially in urban areas like Shanghai [39][40]