diff --git a/.vscode/settings.json b/.vscode/settings.json
index a2f9328f..744ac11d 100755
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -12,5 +12,6 @@
 	],
 	"editor.codeActionsOnSave": {
 		"source.fixAll.eslint": true
-	}
+	},
+	"solidity.compileUsingRemoteVersion": "v0.8.9+commit.e5eed63a"
 }
diff --git a/contracts/src/property/Property.sol b/contracts/src/property/Property.sol
index 9b1ca0b9..105f10bc 100755
--- a/contracts/src/property/Property.sol
+++ b/contracts/src/property/Property.sol
@@ -1,20 +1,21 @@
 // SPDX-License-Identifier: MPL-2.0
 pragma solidity =0.8.9;
 
+import "@openzeppelin/contracts-upgradeable/token/ERC20/ERC20Upgradeable.sol";
 import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
 import "@openzeppelin/contracts/utils/structs/EnumerableSet.sol";
 import "../../interface/IWithdraw.sol";
 import "../../interface/IProperty.sol";
 import "../../interface/IPropertyFactory.sol";
 import "../../interface/IPolicy.sol";
-import "../common/registry/UsingRegistry.sol";
+import "../common/registry/InitializableUsingRegistry.sol";
 
 /**
  * A contract that represents the assets of the user and collects staking from the stakers.
  * Property contract inherits ERC20.
  * Holders of Property contracts(tokens) receive holder rewards according to their share.
  */
-contract Property is ERC20, UsingRegistry, IProperty {
+contract Property is ERC20Upgradeable, InitializableUsingRegistry, IProperty {
 	uint8 private constant PROPERTY_DECIMALS = 18;
 	uint8 private __decimals;
 	uint256 private constant SUPPLY = 10000000000000000000000000;
@@ -32,12 +33,15 @@ contract Property is ERC20, UsingRegistry, IProperty {
 	 * @param _name The name of the new Property.
 	 * @param _symbol The symbol of the new Property.
 	 */
-	constructor(
+	function initialize(
 		address _registry,
 		address _own,
 		string memory _name,
 		string memory _symbol
-	) ERC20(_name, _symbol) UsingRegistry(_registry) {
+	) public initializer {
+		__ERC20_init(_name, _symbol);
+		__UsingRegistry_init(_registry);
+
 		/**
 		 * Validates the sender is PropertyFactory contract.
 		 */
diff --git a/contracts/src/property/PropertyFactory.sol b/contracts/src/property/PropertyFactory.sol
index 1ade91f3..dc3e5ad0 100644
--- a/contracts/src/property/PropertyFactory.sol
+++ b/contracts/src/property/PropertyFactory.sol
@@ -6,6 +6,7 @@ import "../../interface/IPropertyFactory.sol";
 import "../../interface/IMarket.sol";
 import "../common/registry/InitializableUsingRegistry.sol";
 import "./Property.sol";
+import "@openzeppelin/contracts/proxy/Clones.sol";
 
 /**
  * A factory contract that creates a new Property contract.
@@ -77,13 +78,13 @@ contract PropertyFactory is InitializableUsingRegistry, IPropertyFactory {
 		/**
 		 * Creates a new Property contract.
 		 */
-		Property _property = new Property(
+		address propertyAddr = Clones.clone(registry().registries("Property"));
+		Property(propertyAddr).initialize(
 			address(registry()),
 			_author,
 			_name,
 			_symbol
 		);
-		address propertyAddr = address(_property);
 
 		/**
 		 * Adds the new Property contract to the Property address set.
diff --git a/migrations/update/1_update-property-factory-with-seed-property.ts b/migrations/update/1_update-property-factory-with-seed-property.ts
new file mode 100644
index 00000000..df382ff0
--- /dev/null
+++ b/migrations/update/1_update-property-factory-with-seed-property.ts
@@ -0,0 +1,49 @@
+import { upgradeProxy, validateUpgrade } from '@openzeppelin/truffle-upgrades'
+import { type ContractClass } from '@openzeppelin/truffle-upgrades/dist/utils'
+
+const PropertyFactory = artifacts.require('PropertyFactory')
+const AddressRegistry = artifacts.require('AddressRegistry')
+
+const handler = async function (_, network) {
+	if (network === 'test') {
+		return
+	}
+
+	const proxyAddress = process.env.PROPERTY_FACTORY_PROXY!
+	const proxyAddressAddressRegistry = process.env.ADDRESS_REGISTRY_PROXY!
+
+	const newProperty = artifacts.require('Property')
+	_.deploy(newProperty)
+	const deployedNewProperty = await newProperty.deployed()
+	console.log(`[CONFIRMED] new seed Property: ${deployedNewProperty.address}`)
+
+	const existingAddressRegistry = await AddressRegistry.deployed().catch(() =>
+		AddressRegistry.at(proxyAddressAddressRegistry)
+	)
+
+	await existingAddressRegistry.setRegistry(
+		'Property',
+		deployedNewProperty.address
+	)
+	console.log('[CONFIRMED] set the seed Property to Registry')
+
+	const existing = await PropertyFactory.deployed().catch(() =>
+		PropertyFactory.at(proxyAddress)
+	)
+
+	console.log('proxy:', existing.address)
+
+	await validateUpgrade(
+		existing.address,
+		PropertyFactory as unknown as ContractClass
+	)
+
+	console.log('New implementation is valid')
+
+	await upgradeProxy(
+		existing.address,
+		PropertyFactory as unknown as ContractClass
+	)
+} as Truffle.Migration
+
+export = handler
diff --git a/test/property/property.ts b/test/property/property.ts
index e59acea4..07898099 100755
--- a/test/property/property.ts
+++ b/test/property/property.ts
@@ -130,11 +130,14 @@ contract(
 
 		describe('Property; constructor', () => {
 			it('Cannot be created from other than factory', async () => {
-				const result = await propertyContract
-					.new(dev.addressRegistry.address, author, 'sample', 'SAMPLE', {
+				const propertyInstance = await propertyContract.new()
+
+				const result = await propertyInstance
+					.initialize(dev.addressRegistry.address, author, 'sample', 'SAMPLE', {
 						from: deployer,
 					})
 					.catch((err: Error) => err)
+
 				validateAddressErrorMessage(result)
 			})
 			it('The author, decimal places, and number of issues are fixed values', async () => {
@@ -142,7 +145,8 @@ contract(
 					'PropertyFactory',
 					propertyFactory
 				)
-				const propertyInstance = await propertyContract.new(
+				const propertyInstance = await propertyContract.new()
+				await propertyInstance.initialize(
 					dev.addressRegistry.address,
 					author,
 					'sample',
@@ -179,7 +183,8 @@ contract(
 					'PropertyFactory',
 					propertyFactory
 				)
-				const propertyInstance = await propertyContract.new(
+				const propertyInstance = await propertyContract.new()
+				await propertyInstance.initialize(
 					dev.addressRegistry.address,
 					author,
 					'sample',
@@ -214,7 +219,8 @@ contract(
 					'PropertyFactory',
 					propertyFactory
 				)
-				const propertyInstance = await propertyContract.new(
+				const propertyInstance = await propertyContract.new()
+				await propertyInstance.initialize(
 					dev.addressRegistry.address,
 					author,
 					'sample',
@@ -238,7 +244,8 @@ contract(
 					'PropertyFactory',
 					propertyFactory
 				)
-				const propertyInstance = await propertyContract.new(
+				const propertyInstance = await propertyContract.new()
+				await propertyInstance.initialize(
 					dev.addressRegistry.address,
 					author,
 					'sample',
@@ -273,7 +280,8 @@ contract(
 					'PropertyFactory',
 					propertyFactory
 				)
-				const propertyInstance = await propertyContract.new(
+				const propertyInstance = await propertyContract.new()
+				await propertyInstance.initialize(
 					dev.addressRegistry.address,
 					author,
 					'sample',
diff --git a/test/test-lib/instance.ts b/test/test-lib/instance.ts
index cc140589..795b8fa3 100644
--- a/test/test-lib/instance.ts
+++ b/test/test-lib/instance.ts
@@ -19,6 +19,7 @@ import type {
 	ArbSysTestInstance,
 	DevPolygonInstance,
 	TokenURIDescriptorTestInstance,
+	PropertyInstance,
 	TokenURIDescriptorCopyTestInstance,
 	TokenURIDescriptorLegacyTestInstance,
 } from '../../types/truffle-contracts'
@@ -248,7 +249,20 @@ export class DevProtocolInstance {
 		)
 	}
 
+	public async generateProperty(): Promise<void> {
+		const Property = contract('Property')
+		const property = await Property.new(this.fromDeployer)
+
+		await this.addressRegistry.setRegistry(
+			'Property',
+			property.address,
+			this.fromDeployer
+		)
+	}
+
 	public async generatePropertyFactory(): Promise<void> {
+		await this.generateProperty()
+
 		const [proxfied] = await deployProxy(
 			contract('PropertyFactory'),
 			this._deployer