High-end projects like One Central Park attract premium prices from wealthy purchasers who remain unfazed by economic instability.
The luxury real estate sector in Shanghai remains resilient amid nationwide declines, according to analysts. Wealthy investors are injecting funds into premium properties, viewing them as secure investments even amidst economic fluctuations.
All 64 units available at One Central Park, a high-end project located in the heart of the city’s Huangpu district, were quickly purchased by buyers on Wednesday, with transactions totaling approximately 4 billion yuan (USD $556 million).
The development, spearheaded by Sunac China Holdings along with Citic Group and Xinhu Group, is situated within Shanghai’s bustling Xintiandi district known for its retail and leisure facilities. The apartments up for sale had an average price tag of approximately 185,000 yuan per square meter (around 10.8 square feet). Among these, the highest-priced duplex exceeded 246,000 yuan per square meter, marking it as one of the priciest homes sold in the city so far this year based on unit pricing.
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The initial phases at One Central Park were fully booked within hours as well, with the development’s sales this year totaling over 10.8 billion yuan. This achievement makes it the first residential project in China to break through the 10-billion-yuan barrier in 2025.
On Wednesday, the sale featuring apartments ranging from 300 to 1,000 square meters saw almost three times more registrations than available slots, leading to a point-based distribution mechanism aimed at deterring speculative purchases—the first instance of this happening in downtown Shanghai for the current year. According to the developer, they aim to introduce the next stage of their initiative focusing on upper-level units as early as June.
Luxury home sales have shown sustained strength across the city. New home prices in Shanghai rose in April and May, outpacing national averages, according to Centaline Property.
Last week, new-home sales in Shanghai rose 72 per cent from the previous week, while average prices surged 49 per cent to a record 107,746 yuan per square metre, Centaline data showed. Buoying the figures, premium projects including Swire Properties' Lujiazui Taikoo Yuan Residences and Greentown China's Symphony Shanghai all sold out quickly on their launch days, Centaline said.
Units at Poly Real Estate's Bund 98 and ITG Holding's Origin Pile, in the suburbs, saw overwhelming demand this month as well, also triggering points-based sales restrictions.
"Inventory in central locations remains scarce, while demand from high-net-worth buyers, especially younger professionals and returnees [from overseas], is proving to be resilient," said Zhang Yu, a research director at Centaline's Shanghai bureau. "Luxury homes are increasingly seen as value-preserving assets amid economic uncertainty."
Renewed economic confidence, improved liquidity and better-than-expected supply of premium projects in key cities were helping to lift sentiment in the upper end of the market nationwide, analysts said.
In total, Shanghai experienced a 0.5 percent increase in housing prices from one month to the next in April, surpassing other first-tier cities, as reported by the real estate data provider 58Anjuke.
Zhang Bo, an analyst from 58Anjuke, stated, “The statistics do not indicate a widespread rise in prices; instead, they show that high-end offerings are elevating the overall averages.” He further explained, “Currently, pricing dynamics in Shanghai are solely driven by market supply. Prime areas and premium items continue to see robust performance, whereas less attractive zones stay relatively unchanged.”
The luxury segment was leading the current recovery cycle, said Yan Yuejin, vice-president of E-House China Real Estate Research Institute in Shanghai.
"It shows how deep-pocketed buyers are still willing to deploy capital into prime assets, even as the mass market remains subdued," Yan said.
In Shanghai, sales of new homes priced at 30 million yuan or more hit 809 units as of May 19, on track to surpass 2,000 for the second straight year and to match or exceed the full-year tallies between 2021 and 2023, according to E-house.
"Capital is flowing into high-end assets seen as stable and resilient, especially as savings yields drop and broader investments remain volatile," E-house's Yan said. "Favourable homebuying policies have also helped maintain momentum beyond just one-off spikes."
He added that strong demand for upgrades, especially in prime locations, along with recovering sentiment and a lack of resale listings, was giving the market further support.
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