Core Viewpoint - The article discusses the emergence of luxury "big flat" apartments with commercial attributes in prime locations of first-tier cities, priced significantly lower than traditional luxury residential properties, raising questions about their investment viability and associated risks [1][3]. Group 1: Market Trends - In recent years, the luxury housing market in Shanghai has shown independent trends, with high-end properties like Cuihu Tiandi achieving record prices of 21,000 yuan per square meter [3]. - New types of products, referred to as "low-priced luxury big flats," are being marketed at prices that are only a fraction of nearby luxury residential projects, often advertised as selling for "only a fraction of surrounding residential prices" [3][5]. - These "big flats" are being sold at prices as low as 57,000 yuan per square meter, compared to nearby luxury properties priced between 170,000 to 230,000 yuan per square meter [5][10]. Group 2: Product Characteristics - The "big flats" are characterized by their prime locations, luxurious renovations, and immediate availability, appealing to buyers looking for spacious living in desirable areas [5][11]. - Sales personnel highlight that these properties are sold as commercial assets, which come with higher utility costs and shorter land lease terms, raising concerns about long-term value retention [5][11]. Group 3: Regulatory Environment - Since 2017, Shanghai has implemented strict regulations on commercial office projects, halting the approval of apartment-style office projects, which has led to a decline in the popularity of commercial properties [7][8]. - Despite regulatory challenges, the market for "class residential" commercial apartments is resurging, with many projects being sold at half the price of residential properties in core areas [9][10]. Group 4: Buyer Demographics - The primary buyers of these commercial apartments are individuals seeking high-quality living spaces in prime locations, often prioritizing location over school districts [11]. - Some buyers include older individuals looking to improve their living conditions while remaining in familiar neighborhoods [11]. Group 5: Investment Considerations - From a self-use perspective, these properties offer good value due to their location and size, while their rental yield is generally above 3%, compared to lower yields for traditional residential properties [12]. - However, potential buyers are cautioned about the policy risks associated with these commercial properties, particularly regarding future resale challenges [12].