Core Viewpoint - The trend of "beautified houses" is emerging in the old property market, where investors buy low-priced, dilapidated homes, renovate them, and sell at a premium to younger buyers who prioritize aesthetics and emotional value [9][15][17]. Group 1: Market Dynamics - In Hangzhou, the prices of old properties have been declining, with average transaction prices in August falling to between 25,000 to 30,000 CNY per square meter, returning to 2016 levels [10]. - Despite the overall price decline, some investors are capitalizing on the opportunity by purchasing old properties at low prices and selling them after renovations for significant profits, with one investor reportedly earning a net profit of 600,000 CNY after a six-month turnaround [9][11]. Group 2: Investment Strategy - Investors are focusing on "beautified houses," which involves purchasing poorly maintained properties and enhancing them through tasteful renovations to attract buyers willing to pay a premium [11][15]. - A specific case highlighted a property purchased for 3.5 million CNY, renovated for 300,000 CNY, and later sold for 4.63 million CNY, demonstrating the potential for substantial returns [11][12]. Group 3: Buyer Preferences - Young buyers are increasingly drawn to well-decorated homes, often choosing them over cheaper, unrenovated options, indicating a shift in purchasing behavior towards valuing aesthetic appeal and immediate livability [14][15]. - A survey revealed that 80% of potential buyers preferred a well-decorated, move-in-ready home over a cheaper, poorly maintained one, emphasizing the importance of emotional value in real estate transactions [14]. Group 4: Institutional Interest - Institutional investors are also entering the "beautified house" market, with several properties undergoing renovations to meet the demand for aesthetically pleasing homes [12]. - Companies like Beike are actively engaging in the "beautified house" business, recognizing the market potential in enhancing the appeal of older properties [14]. Group 5: Challenges and Risks - The "beautified house" investment strategy is not without risks, including the potential for cost overruns during renovations and the challenge of ensuring high-quality workmanship [17][18]. - There are concerns about the quality of renovations, with some properties being labeled as "串串房" (quickly renovated houses) due to the use of cheap materials and poor construction practices, which can lead to health hazards and reduced buyer interest [17][18].