Demand in Shanghai’s luxury residential market is expected to remain robust in 2025, driven by a range of supportive policies, according to industry experts. However, the competitiveness of these properties will largely depend on the quality of the developments.
Experts suggest that while the market is poised for continued strength, only projects with superior quality and design will stand out. As buyers become more discerning, developers are urged to focus on delivering high-standard residences to maintain a competitive edge in the luxury segment.
The popularity of the premium home market in Shanghai was reflected to some extent by sales of high-priced properties beating expectations last year, suggest experts.
According to the experts, some clients are still willing to buy luxury assets in Shanghai, and such demand could be unleashed anytime. The city's premium property market may perform better in the first half of this year compared with a year earlier. They pointed out that most units in the second phase of the Shanghai One Sino Park project in Huangpu district, which launched sales in the middle of last month, have already been sold, marking a strong start for this year's luxury home market.
However, luxury residential projects can face challenges with location, features, amenities, and others, which are key factors in determining whether consumers are willing to pay high prices.
The competition in Shanghai's heritage villa market will intensify this year. Developers must compete for customers by refining product quality across all dimensions, building strong brand influence, and enhancing promise deliveries. Projects with unique features and premium amenities will be more competitive, experts suggested.
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