Shanghai unveils comprehensive property policies to boost housing market

Shanghai authorities have unveiled a set of nine new measures aimed at better meeting the diverse housing needs of residents and bolstering market confidence in the city's real estate sector.

The policy adjustments, announced on Monday, include significant steps to ease home purchase restrictions for non-Shanghai residents, support the reasonable housing needs of families with multiple children and optimize the housing credit policy.

Following the new housing policies in Shanghai on Monday evening, real estate agencies across the city witnessed a surge in inquiries from potential buyers.

"Since the new policy was announced, we've been receiving a lot of inquiries. Most of the questions for me are from families with multiple children who are looking to buy a third property. They're asking about things like mortgage options and down payment requirements. My colleagues have also been getting a lot of calls. I'd estimate we've received several dozen inquiries so far," said Cui Lifu, store manager of an real estate agency in Xuhui District, Shanghai.

The most significant adjustment is the shortening of the social security or individual income tax payment duration required for non-Shanghai residents to purchase homes - from the previous five years to just three years, and further lowered to two years for talent in key development areas.

Experts suggest that this move will play an important role in accelerating the sell-through of new homes in the suburban areas of Shanghai.

Additionally, the policy has expanded the home purchase scope for single non-Shanghai residents. Previously limited to purchasing new homes outside the outer ring road and existing homes, they can now also purchase existing homes within the outer ring road.

The new measures also support the reasonable housing needs of families with multiple children, enabling them to purchase an additional home and optimizing loan standards to reduce their interest burdens.

While lowering the home purchase threshold, Shanghai has also made effective adjustments to the housing credit policies. The minimum downpayment ratio for individual commercial housing mortgages has been lowered to 20 percent for first-home purchases and 35 percent for second-home purchases. The minimum downpayment ratio for second-home purchases in the Shanghai Pilot Free Trade Zone Lingang New Area and six of its suburban districts has been adjusted to 30 percent.

The authorities have also increased the maximum provident fund loan limits, with further increases for families with multiple children purchasing their first home.

To support households facing housing difficulties, the notice proposes providing appropriate subsidies for transition rental housing, renovation, and moving expenses for residents who meet the conditions for "trading in the old for the new."

"This package of real estate policies in Shanghai better meets the rigid housing demands and diverse improvement housing needs of residents, which will better guide market expectations, boost market confidence, and further promote the stable and healthy development of Shanghai's real estate market," said Yan Yuejin, research director of the Shanghai E-House Research Institute.

Shanghai unveils comprehensive property policies to boost housing market

On his second official visit to China, Prime Minister of the Republic of Vanuatu Charlot Salwai expressed admiration for China's remarkable ability to balance preserving its cultural heritage with embracing innovative transformation.

Salwai paid an official visit to China from July 7 to 12. During his trip, he toured the southern province of Guangdong and explored the megacities of Beijing and Shanghai. His visit included tours of high-tech companies, a ride on a high-speed train, and a performance of traditional Cantonese opera.

In an interview with China Central Television Network (CCTV) aired on Friday, Salwai recounted his journey starting with a warm welcome that included enjoying Beijing Roast Duck, also known as Peking Duck -- a culinary delight introduced to him by the Chinese ambassador in Vanuatu.

"Many had to say. Peking Duck. Because we had it here on our arrival, so it was very tasty. And I understand that the Chinese ambassador in Vanuatu brought us to one of the traditional restaurants, small but beautiful," he said. The prime minister sees China's preservation of its culture as a vital lesson in understanding one's roots and the journey to the present day, acknowledging China's efforts to integrate cultural preservation with modernization.

"It's going to be my second official visit to China. I'm always impressed to see big changes and especially innovations made by China and especially the cities. Because a big impression is to see how China continues to maintain and keep its culture. Because I think it's the basis of everything -- to know where you come from and to understand where we are today. I feel that China is doing a lot to maintain its culture, but at the same time, doing, innovating to transform its culture,” Salwai said.

He also emphasized the importance of learning from China's sustainable development strategies.

"Today, it comes from a long way, some hardship, the government, and also the people of China. So, I'm impressed to see what is done, especially how China associates infrastructure development with nature. That's meant to keep, continue to keep the environment. It takes effort with the climate change by maintaining the ecosystem. I think it's something that, for a small country like Vanuatu, is important to learn. So, we are here. I'm here with my delegation to learn," Salwai said.

Vanuatu's PM commends China's cultural preservation, innovation amid fast growth