Shanghai Eases Home-Buying Limits to Boost Sluggish Property Market

Shanghai has implemented a series of relaxed home-buying policies to stimulate its struggling property market amidst nationwide price declines. Families and single adults can now purchase an unlimited number of homes outside the city's outer ring road, an area comprising two-thirds of the city’s housing, lifting the previous two-home limit. Mortgage rates for second homes have been lowered to match those for first-time buyers, reducing the financial burden, while homebuyers can benefit from increased housing provident fund loans and the ability to use these funds for down payments. Additionally, non-residents with qualifying social insurance or tax payment records are eligible for these eased restrictions, and some property tax exemptions have been introduced for non-local families. These measures aim to address pent-up housing demand, improve living conditions, and promote stable growth in Shanghai’s real estate market, which has faced falling prices for new and pre-owned homes nationwide since 2022. Despite these incentives, some market experts remain cautious due to broader economic and wage growth concerns.