Shanghai's real estate market is once again experiencing a new round of policy adjustments. On the evening of September 29, six departments, including the Shanghai Municipal Housing and Urban-Rural Development Management Committee, the Housing Administration Bureau, the Finance Bureau, the Taxation Bureau, the People's Bank of China's Shanghai Head Office, and the Financial Supervision Bureau, jointly issued the "Notice on Further Optimizing the City's Real Estate Market Policies and Measures," which will officially take effect on October 1, 2024. This is the second major effort within four months, following the "Shanghai Nine Measures" on May 27.
The core of this policy focuses on optimizing purchase restrictions, adjusting credit, and reforming taxation, attracting significant attention from all sides of the market. Lu Wenxi, an analyst at Shanghai Centaline Property, stated that these policies directly affect the interests of both buyers and sellers and are expected to have a positive impact on market transactions. Yan Yuejin, deputy director of the E-House China Research and Development Institute, also noted that the new policies involve administrative, financial, and fiscal fields, demonstrating an ample toolkit, which is likely to accelerate the release of policy effects.
Regarding the adjustment of housing purchase restrictions, the new policies lower the threshold for non-local residents to purchase homes outside the Outer Ring Road by reducing the required years of social security or income tax payments to just one consecutive year. Lu Wenxi pointed out that this adjustment precisely matches the needs of first-time homebuyers, making it easier to "get on the property ladder," which may further increase housing transactions outside the Outer Ring Road.
The policies also cater to some people with improving housing needs by clearly stipulating that non-local resident families holding a Shanghai Residence Permit and meeting the points requirement, having paid social security or income tax for three years, can enjoy the same purchasing treatments as local resident families. In addition, for the new Lingang area of the free trade zone, the policy allows for the purchase of one additional home beyond the current purchase restrictions, further promoting a balance between work and residence.
As the policies took effect, several real estate agencies reported a surge in housing consultations, with some agencies claiming a 30% increase in consultation volume, working until 1 a.m. The enthusiasm shown by the market indicates that these policies will bring a new wave of activity to Shanghai's real estate market.
