In a bold move to invigorate its housing sector, Shanghai authorities announced a comprehensive policy package on Monday aimed at supporting home buyers and stimulating the property market.
The nine newly introduced measures are designed to cater to the diverse living needs of Shanghai's residents, reflecting the city's commitment to creating a more accessible and dynamic housing environment.
Key highlights of the package include the easing of home-purchase restrictions for non-Shanghai residents and divorced couples, enabling a broader range of individuals to enter the property market. Additionally, families with two or more children are now permitted to purchase an extra home, addressing the growing demand for larger living spaces.
Financial barriers are also being reduced through the lifting of the lending cap for mortgages under the housing provident fund. This long-term housing savings plan, which mandates monthly contributions from both employers and employees, will now offer greater flexibility to borrowers.
Furthermore, the minimum down-payment ratio has been adjusted to make homeownership more attainable. For first-time homebuyers, the down-payment requirement for individual commercial housing mortgages has been lowered to 20 percent, while second-home purchases now require a 35 percent down payment. In the Shanghai Pilot Free Trade Zone Lingang New Area and six suburban districts, the down-payment ratio for second homes has been set at 30 percent, providing targeted support in key growth areas.
These strategic policy changes are expected to not only boost the local real estate market but also attract more investments, contributing to Shanghai's reputation as a global economic powerhouse. As the city continues to adapt to the evolving needs of its residents, these measures position Shanghai as a forward-thinking metropolis ready to embrace sustainable urban growth.
Reference(s):
Shanghai releases major policy package to stimulate property market
cgtn.com
