Core Viewpoint - The article discusses the challenges and potential of China State Construction Engineering Corporation's (CSCEC) new luxury residential project in Shanghai, questioning whether it can succeed in a competitive market despite lacking experience in high-end property development [1][3][11]. Market Context - The recent policy changes in Shanghai, particularly the "Six Policies," have created a favorable environment for property sales, especially in the outer ring areas, but the project in question is located in the inner ring, raising questions about its market appeal [3][9]. - The average price of the new project is 146,800 RMB per square meter, which is not competitive compared to established properties like the Danning Jinmao Mansion, which has a strong reputation and price stability over the years [3][5]. Company Background - CSCEC has primarily focused on projects in the outer ring areas of Shanghai, with no prior experience in independently developing high-end residential properties in the city center, which may pose risks in meeting the expectations of discerning buyers [3][5][11]. - The company has a history of significant projects in Shanghai, such as the North Square of Shanghai Railway Station and the Huangpu Old Town renovation, which demonstrate its capability in urban construction and complex project management [5][11]. Customer Insights - For improvement-oriented buyers, location and construction quality are paramount, and CSCEC's state-owned enterprise background and experience in central urban projects may serve as an implicit endorsement of quality [7][9]. - The recent policy adjustments have indirectly expanded the potential buyer base by lowering barriers for non-local single buyers and optimizing credit and tax policies, which could benefit the project despite its location [9][11]. Strategic Positioning - CSCEC's strategy appears to be a gradual upgrade, having first established a presence in the outer ring before moving into the core area, which allows for resource accumulation and local market understanding [11]. - The company's approach to navigating the Shanghai market reflects a focus on deepening its presence rather than merely expanding for scale, which is crucial in a fluctuating real estate environment [11].

Core Insights - The Shanghai inner ring new housing market remains highly active, with several projects exceeding expected subscription rates [1][3] - The introduction of the "Six Policies" in late August has led to increased interest in properties outside the outer ring, yet some inner ring projects are also gaining traction [3][16] - The success of the Zhongjian New Community project is attributed to its high-quality presentation and innovative design, appealing to high-end buyers [5][18] Market Performance - The HeYue Changning project in Changning sold out its first batch, with a second batch priced at approximately 128,800 CNY per square meter [1] - The Feiyun Yuefu project in Pudong achieved sales exceeding 12.6 billion CNY within five months, highlighting the scarcity and product strength in the inner ring area [1] - The Zhongjian New Community project attracted 185 groups for 140 units, achieving a subscription rate of over 143% with an average price of 146,800 CNY per square meter [3][14] Product Features - The Zhongjian New Community features a 15,000 square meter real-life demonstration area, showcasing the quality of the buildings and amenities [5][7] - High-end materials and luxurious amenities, including a 3,000 square meter sunken courtyard clubhouse, are designed to appeal to affluent buyers [7][9] - The project is marketed as a zero-carbon community, aligning with current trends in sustainability and high-quality living [7][18] Location Advantages - The project is located in the mature and desirable Jing'an Danning area, known for its rich amenities and vibrant living environment [9][12] - The scarcity of new homes in core areas enhances the attractiveness of the Zhongjian New Community to potential buyers [9][21] Challenges and Market Dynamics - The developer, Zhongjian Second Bureau, faces challenges as it transitions from outer ring projects to high-end developments in the city center [12][14] - The pricing strategy at 146,800 CNY per square meter may lead to comparisons with nearby second-hand properties, putting pressure on the project's perceived value [14][16] - The "Six Policies" have increased market options, potentially diverting some buyers to properties outside the inner ring [16][18] Conclusion - The success of the Zhongjian New Community indicates a shift in the market, emphasizing the importance of product quality and location in attracting discerning buyers [20][21] - Developers in central areas must focus on delivering high-quality products to meet the expectations of experienced buyers [21]