Core Viewpoint - The current real estate market is experiencing a downturn, leading to declining sales for developers and an increase in second-hand housing listings. For first-time homebuyers, purchasing a home remains a crucial decision impacting marriage, residency, and children's education. This has raised questions about the investment value of elevator apartments versus walk-up apartments over the next five years [1]. Group 1: Investment Value Comparison - Walk-up apartments generally offer a higher usable area due to lower shared space ratios, typically between 10% to 15%, compared to elevator apartments which can have shared space ratios of 25% to 30%. This means a 100 square meter elevator apartment may only provide around 70 square meters of usable space, while a walk-up apartment can provide 85 square meters or more [4]. - The safety aspect favors walk-up apartments, as residents can quickly evacuate via stairs during emergencies like fires or earthquakes, whereas elevators may become inoperable, complicating evacuation efforts [5]. - Maintenance costs for elevator apartments are higher due to the need for elevator installation and upkeep, which translates into increased fees for residents. In contrast, walk-up apartments do not incur these additional costs, making them more financially appealing [6]. Group 2: Future Market Trends - Elevator apartments face challenges regarding demolition due to high residential density and associated costs, making it economically less viable for governments to invest in their relocation. This could lead to older elevator apartments being less desirable in the market compared to older walk-up apartments, which may have better opportunities for redevelopment [7].

Core Insights - The current housing market is experiencing a surge in demand due to relaxed purchasing policies and lower mortgage rates, leading to unprecedented opportunities for first-time and upgrading homebuyers [1] - Potential buyers face a dilemma between choosing traditional "staircase houses" and modern "elevator houses," raising questions about their future value [1] Group 1: Staircase Houses - Staircase houses have a smaller shared area, allowing buyers to enjoy more usable indoor space [2] - They incur lower property management fees, providing savings for homeowners [2] - The safety aspect is higher, especially in emergencies, as escape routes are more accessible [2] Group 2: Elevator Houses - Elevator houses offer expansive views and better natural light, creating a more comfortable living environment [3] - The convenience of elevators eliminates the need for climbing stairs daily [3] Group 3: Disadvantages of Elevator Houses - Elevator houses typically have larger shared areas, which can reduce the actual usable space significantly, leading to higher overall costs for homeowners [6] - Maintenance costs for elevators and other shared facilities can escalate over time, burdening residents with additional expenses [7] - The potential for demolition is lower for elevator houses due to the complexity and cost associated with relocating a larger number of residents [8] - In emergencies, elevator houses pose greater risks as elevator systems may fail, complicating evacuation efforts [8]

Core Insights - The article discusses a shift in real estate investment focus towards older, low-rise buildings in city centers, which are perceived as valuable urban "equity" rather than mere physical properties [1][3][10] Group 1: Investment Perspective - Investors are purchasing not just buildings, but the core, scarce "equity" of the city, as these older low-rise buildings occupy prime locations that cannot be replicated [3][5] - The value of properties in top school districts with comprehensive amenities is significantly higher than that of luxury villas in suburban areas, emphasizing the importance of location [5][8] - These properties are seen as resilient assets with minimal speculative risk, having undergone rigorous valuation over time [5][8] Group 2: Lifestyle and Experience - The modern emphasis on efficiency has led to a loss of personal connection with time, and owning a low-rise building allows for a more mindful and connected lifestyle [5][6] - The experience of walking up stairs rather than using elevators fosters a deeper appreciation for life and community interactions [5][6] Group 3: Risk Management - Low-rise buildings present a simpler living experience with lower maintenance risks compared to high-rise apartments, which rely on complex systems that can fail [6][8] - These properties serve as a stabilizing asset in investment portfolios, providing a "safe harbor" during market fluctuations due to their enduring value [8][10]

Core Viewpoint - The resurgence of interest in older walk-up apartments, particularly top-floor units, is driven by their affordability and potential for future value appreciation through urban redevelopment and renovation projects [1][3]. Group 1: Market Dynamics - Older walk-up apartments are being purchased due to their significantly lower prices compared to newer developments, with examples showing prices as low as 200 million yuan for 60 square meters in Shenzhen and 10 million yuan for 80 square meters in Tonghua [3]. - The price difference for top-floor units can be substantial, with savings of 40-50 million yuan for a 100 square meter apartment in Shanghai compared to lower floors, creating a profit margin for investors [3]. Group 2: Investment Opportunities - Investors are betting on potential demolition and compensation, as compensation is calculated based on area rather than floor level, leading to high return rates if redevelopment occurs [5]. - Renovation of older apartments can significantly increase their value, with post-renovation price premiums of 15% and rental yields rising by 15-20%, making them attractive for rental income [6][7]. Group 3: Government Policies - Local governments are actively purchasing older properties for redevelopment, which boosts market confidence and provides a safety net for investors [9][11]. - Policies supporting the acquisition of older properties are making previously unsellable units more appealing, as they may be eligible for government buyouts [9]. Group 4: Location and Demand - The location of older walk-up apartments is crucial; those near public transport and essential services are more desirable, ensuring a steady demand for rentals and easier resale [12]. - Low total price points for small units are attracting budget-conscious investors, with quick turnover potential in markets like Weihai [14]. Group 5: Risks and Considerations - While top-floor units offer high potential returns, they also come with risks such as uncertain demolition plans and high maintenance costs due to aging infrastructure [16].

Core Viewpoint - Wealthy individuals are increasingly acquiring "staircase houses" despite their age and infrastructure issues, driven by various investment motivations [1][5]. Group 1: Advantages of Staircase Houses - Staircase houses are often located in prime urban areas with comprehensive amenities such as supermarkets, hospitals, schools, and public transport, making them convenient for residents [3]. - The price of staircase houses is significantly lower than that of elevator-equipped houses, and they typically have a higher usable area ratio [3]. - Staircase houses, usually 5-6 stories high, offer better safety in emergencies like fires or earthquakes, allowing for quicker evacuation compared to taller buildings [3]. Group 2: Investment Motivations - Wealthy individuals are purchasing staircase houses to rent them out, generating rental income. For instance, a 38 square meter staircase house in Shanghai's Jing'an District can be bought for 1.8 million, yielding an annual rental income of approximately 50,000, which is more profitable than bank savings [7]. - The potential for property appreciation through urban renewal projects or original reconstruction is a significant draw. Renovations can enhance the property's value, making it easier to sell or rent [9]. - There is also the possibility of demolition and redevelopment, which can lead to substantial returns. For example, a 40 square meter staircase house purchased for around 2 million could yield over 6.3 million in compensation if demolished [11]. Group 3: Market Conditions - The current market sees a decline in staircase house prices, with drops exceeding 30%, leading to a decrease in second-hand property transactions and rental prices [11]. - Despite the potential for high returns, the overall investment risk remains considerable due to the current downward trend in property values and rental income [11].

Group 1: Core Insights - The rising interest in "staircase apartments" among wealthy individuals is attributed to their location in "golden areas" of cities, which are often more desirable than newly built elevator apartments located in suburban areas [3][4] - Staircase apartments typically offer lower density living environments, providing a quieter and more comfortable atmosphere compared to high-rise elevator buildings [5][6] - The practical utility of staircase apartments is enhanced by their lower common area expenses, resulting in more usable living space compared to elevator apartments [7] Group 2: Value Proposition - Staircase apartments are generally priced 20% to 30% lower than elevator apartments in the same area, allowing for additional funds to be allocated for personalized renovations [8] - The potential for customization in staircase apartments is high due to their solid brick structures, enabling significant upgrades that can enhance comfort and future value [8] - The article emphasizes the importance of selecting the right staircase apartment, including considerations for floor level, property management quality, and thorough inspection of the building's condition [9]

Core Insights - The article discusses the increasing interest in old, low-rise walk-up apartments, often referred to as "step-ladder houses," due to their affordability and potential for investment returns [2][3]. Group 1: Market Dynamics - There is a notable trend of investors purchasing old, low-rise apartments, particularly top-floor units, which were previously overlooked due to their age and condition [2]. - Prices for these properties are significantly lower compared to newer developments, with examples showing a 30% price difference for top-floor units in Jilin and a 4000 yuan price gap in Shanghai compared to lower floors [3]. Group 2: Government Policies - Various local governments are initiating policies to stabilize the market for old properties, including buyback programs for unsold inventory and incentives for property owners, which enhances liquidity for these previously stagnant assets [5]. - The government has plans to complete the renovation of old residential areas built before 2000 by 2025, focusing on properties with safety concerns, which could lead to increased demand for these old apartments [9]. Group 3: Investment Opportunities - Investors are betting on potential demolition and redevelopment opportunities, as compensation for demolished properties is based on area rather than floor level, leading to high return rates [7]. - Even without demolition, ongoing renovation policies are improving the living conditions and rental values of these properties, with rental income increasing by 15%-20% post-renovation [10]. Group 4: Property Characteristics - Walk-up apartments generally have a higher usable area due to lower common area allocations, making them more attractive to buyers and renters [12]. - Key factors for selecting these properties include location and proximity to essential amenities, which can ensure higher occupancy rates and easier resale [13]. Group 5: Target Demographics - Low total price and small unit sizes make these properties appealing to middle and lower-budget investors, allowing for easier turnover and lower financial risk [15]. - Top-floor units are particularly favored due to their lower prices and potential for high compensation in case of redevelopment, despite the inconvenience of climbing stairs [17].

Core Insights - The article discusses a trend where high-income individuals are increasingly purchasing walk-up apartments in prime urban areas, valuing their hidden advantages over modern high-rise buildings [3][22]. Group 1: Market Trends - A significant portion of buyers for walk-up apartments in major cities like Beijing, Shanghai, Guangzhou, and Shenzhen are high-income earners, with about 30% of buyers in these areas earning over one million annually [3]. - The preference for walk-up apartments is driven by their location in mature urban areas, which offer better access to schools, hospitals, and shopping facilities compared to newly built high-rise buildings often located in suburban areas [6][8]. Group 2: Advantages of Walk-Up Apartments - Walk-up apartments, built mainly from the 1990s to around 2010, are prized for their land value in developed urban centers, providing significant time savings for commuting and daily activities [6][8]. - These apartments typically feature lower residential density, with a common building density ratio below 1.5, compared to new high-rise buildings that often exceed 3.0, creating a more tranquil living environment [10]. - The design of walk-up apartments often adheres to practical principles, resulting in lower common area ratios (8%-10%) compared to high-rise buildings (20% or more), allowing for more usable space [14][16]. Group 3: Customization and Value - Walk-up apartments are generally priced 30%-50% lower than their high-rise counterparts, allowing buyers to invest in renovations that enhance their living experience, such as adding private elevators and modernizing interiors [18][20]. - The customization potential of walk-up apartments enables owners to create personalized living spaces that blend traditional charm with modern comforts, which is often challenging to achieve in new developments [20][22]. Group 4: Consumer Preferences - The article emphasizes that purchasing a walk-up apartment is not merely a cost-saving measure but a strategic choice for affluent buyers seeking quality living environments that meet their specific needs [22][24]. - The decision to buy a walk-up apartment over a high-rise is influenced by factors such as mature amenities, quiet living conditions, and practical space utilization, making them a viable option for discerning buyers [24].

Core Insights - Wealthy individuals are increasingly purchasing "staircase houses" in major cities like Shenzhen, with some properties seeing price increases of up to 15% since October of last year [1][3]. Group 1: Reasons for Wealthy Individuals Buying Staircase Houses - Staircase houses offer significant advantages, including prime locations that ensure higher value potential and better resilience against market downturns [5]. - Mature community amenities in older neighborhoods provide comprehensive living resources, making them more attractive compared to new developments [6]. - Safety concerns are paramount, as staircase houses present fewer risks during emergencies compared to high-rise buildings with elevators [6]. Group 2: Investment Potential of Staircase Houses - Wealthy investors are willing to pay a premium for staircase houses due to their perceived appreciation potential, especially in core urban areas where population influx drives property values up [8]. - The possibility of redevelopment and compensation from urban renewal projects makes staircase houses an appealing investment, with examples of significant compensation amounts during recent demolitions [10]. - Investors view purchasing staircase houses as a low-risk opportunity, as they can either benefit from potential redevelopment or retain value through rental income [13]. Group 3: Selection Criteria for Staircase Houses - Preferred locations include urban core areas with access to shopping, schools, and public transport, enhancing both convenience and investment potential [15]. - The quality of the community and property management is crucial for ensuring a comfortable living environment [15]. - Ideal floors are typically between the 3rd and 5th, balancing light exposure and ease of access [15]. - Property quality must be thoroughly assessed, as the market for staircase houses varies significantly [15]. Group 4: Market Outlook - Wealthy individuals are selective in their investments, focusing on major cities where even a 15% price increase is seen as a strong indicator of future profitability [17].

Core Viewpoint - The article highlights the hidden risks and challenges associated with purchasing stairway apartments, emphasizing that despite their lower prices, they may lead to significant long-term issues for buyers [1][13]. Group 1: Investment Risks - Stairway apartments have poor liquidity and depreciation issues, making them high-risk investments. For instance, a property in Shanghai's Jing'an District saw its price drop from 65,000 yuan per square meter in early 2024 to 56,000 yuan now, indicating a significant decline [1]. - Many owners struggle to sell their stairway apartments, often listing them for a year without success, leading to forced retention of these properties [1]. Group 2: Quality of Life Concerns - Living in stairway apartments poses significant inconveniences, especially for families with elderly members or young children. Daily activities such as carrying groceries or receiving deliveries can become challenging [2]. - Residents on the first and top floors face unique issues, such as pest problems and water leakage, which can severely affect their living conditions [5]. Group 3: Installation Challenges - The desire to install elevators in stairway apartments is often met with resistance from lower-floor residents, who fear it may affect their property value and living conditions. Even with agreement, the high costs of installation and maintenance deter many owners [5]. Group 4: Recommendations for Buyers - If purchasing a stairway apartment is necessary, it is advisable to choose properties aged between 5 to 15 years and preferably on the 3rd or 4th floors for better accessibility and resale potential [7]. - Selecting properties in well-equipped neighborhoods with good educational, medical, shopping, and transportation facilities can enhance living convenience [9]. - Conducting thorough assessments of property management quality through factors like landscaping and neighbor reviews is crucial [11].