Many regions implement optimization measures after the holiday to stimulate the real estate market vitality

Our reporter Zhang Xiangyi

On February 25, the Shanghai Municipal Housing and Urban-Rural Development Management Committee and four other departments jointly issued the “Notice on Further Optimizing and Adjusting the City’s Real Estate Policies” (hereinafter referred to as the “Notice”) to promote stable and healthy development of the real estate market.

The “Notice” involves policy adjustments in multiple areas such as housing purchase restrictions, housing provident funds, and personal property taxes, benefiting various housing groups and stimulating housing consumption demand.

After the Spring Festival, including Shanghai, several cities such as Huai’an in Jiangsu and Guiyang in Guizhou have introduced policies to optimize the real estate sector. By making full use of housing provident funds, purchase subsidies, and other policy tools, they aim to better meet residents’ rigid and improved housing needs.

The “Notice” clearly states that housing purchase restrictions will be further eased. Specifically, for non-Shanghai residents or single adults, if they have paid social insurance or personal income tax in the city for at least one year before purchasing a home, they can buy unlimited units outside the outer ring road, but are limited to one unit inside the outer ring. For those who have paid social insurance or personal income tax for three years or more, the limit inside the outer ring is two units.

“These tiered easing strategies precisely match Shanghai’s customer structure and housing needs, effectively accommodating market demand and improving supply,” said Zhang Bo, President of 58 Anjuke Research Institute. Data from 2025 shows that the overlap between new and second-hand housing buyers in Shanghai is only 8.7%, the lowest nationwide, indicating a stable pattern of “new homes for improvement and second-hand homes for rigid demand.” The reduction of the social insurance or personal income tax payment requirement inside the outer ring to one year specifically lowers the barrier for new residents and talents to buy their first home, aligning with the dominant demand for second-hand housing.

Zhang Wenjing, General Manager of Shanghai Data at the China Index Academy, believes that this adjustment continues the gradual and refined approach, focusing more on the inner outer ring, directly expanding the housing demand within the outer ring, and potentially having a more significant impact on the market. Since the share of second-hand homes is larger inside the outer ring, the policy is likely to have a more positive effect on stabilizing second-hand home prices.

Additionally, the “Notice” optimizes housing provident fund loan policies by increasing the maximum loan amount, refining the loan unit recognition, and expanding support for multi-child families purchasing homes, to better support housing consumption and meet depositors’ needs for comfortable living at different stages.

The maximum loan amount for first-time homebuyers using the housing provident fund has been increased from 1.6 million yuan to 2.4 million yuan. Coupled with policies allowing up to a 35% increase for multi-child families and green building purchases, the maximum loan amount for housing provident fund loans in Shanghai can reach 3.24 million yuan.

“After Shanghai’s policy adjustment, the ratio of the first home loan amount to the median total price of new homes will approach 50%, which will better support homebuyers, reduce purchase costs, and boost housing consumption willingness and capacity,” said Zhang Wenjing. She added that there is still room for further optimization of the down payment ratio and scope of housing provident fund use to further support housing consumption.

Li Yujia, Chief Researcher at the Guangdong Housing Policy Research Center, believes that Shanghai’s early implementation of these policies signals clear efforts to reduce costs, lower thresholds, and boost expectations. The targeted policies will significantly drive the “small spring” market in March.

Currently, promoting active release of housing demand and balancing supply and demand in the real estate market are key policy directions across many regions. Many localities are frequently announcing favorable policies, including purchase subsidies and optimized housing provident fund policies.

Regarding purchase subsidies, on February 24, Huai’an announced the “Five Measures to Promote Healthy Development of the Real Estate Market” (hereinafter referred to as the “Measures”), which include subsidies for purchasing new commercial housing, corporate group-buying talent housing, and elderly care housing.

The “Measures” specify that a subsidy of 2% of the total purchase price will be given for buying new commercial housing. For new residents in Huai’an (those without local household registration or with less than 10 years of local employment), a subsidy of 3% of the total purchase price will be provided.

In terms of housing provident fund policies, Guiyang announced on February 24 the “Implementation Measures for Commercial Personal Housing Loans to Housing Provident Fund Personal Loans,” standardizing the management of “commercial to public” loan conversions and supporting employees’ rigid housing needs.

“Currently, including Shanghai, the focus of housing policies across regions is on unlocking demand potential,” Li Yujia said. Under the combined influence of policy support, developer promotions, and seasonal peak periods, the housing market in March may see a small peak. The key for April and May is whether the March market can, with policy support and improved expectations, create a healthy cycle of selling old homes and buying new ones.

Zhang Wenjing stated that with more policies coming into effect, Shanghai’s real estate market is expected to stabilize and recover first, playing a leading role among large cities and improving overall market expectations. She also anticipates that Shenzhen will further optimize and adjust its real estate policies to boost market confidence.

(Edited by: Wenjing)

Keywords: Housing Market