Shanghai city new real estate policies to take effect on Feb.26

Shanghai city new real estate policies to take effect on Feb.26

Shanghai Introduces New Real Estate Policies to Stimulate Housing Market

Shanghai has announced revised real estate policies effective February 26, 2026, aimed at revitalizing the city's property sector and addressing lingering market challenges. The measures, jointly issued by six municipal departments, include the removal of purchase restrictions for eligible families and individuals seeking to buy homes beyond the city's Outer Ring Road.

Under the new rules, local households and non-local residents with at least one year of tax or social insurance contributions in Shanghai are now permitted to purchase an unlimited number of properties in suburban areas. Notably, single adults will be classified as "families", granting them the same purchasing privileges as traditional households. This adjustment is expected to expand access to the housing market for a broader demographic, including young professionals and single-income households.

The policy also introduces several financial incentives. Homebuyers may now use both their own and their spouse's housing provident fund contributions for down payments, and loan ceilings have been raised to 1.84 million yuan ($258,600) for first-time buyers and 2.16 million yuan for families with multiple children. Additionally, banks will no longer differentiate between first- and second-home mortgage applications, reducing borrowing costs for many buyers.

Experts suggest the measures aim to stabilize the market and reduce inventory in suburban areas. Yan Yuejin of the E-House China R&D Institute noted that the policy aligns with national efforts to stimulate demand and supports inventory reduction in the secondary housing market. Lu Wenxi of Centaline Shanghai added that the timing—just ahead of the traditional September-October sales peak—positions the city to strengthen market momentum.

The adjustments reflect broader efforts by Chinese cities to balance housing affordability with economic growth, following similar easing measures in Beijing earlier this year. While the long-term impact remains to be seen, the policies signal a proactive approach to addressing regional market imbalances and supporting buyer confidence.

(https://m.economictimes.com/news/international/world-news/shanghai-relaxes-home-buying-restrictions-for-eligible-families/articleshow/123494452.cms): Economic Times
(https://macaudailytimes.com.mo/shanghai-eases-homebuying-rules-to-boost-property-market.html): Macao Daily Times
(https://m.economictimes.com/news/international/world-news/shanghai-relaxes-home-buying-restrictions-for-eligible-families/articleshow/123494452.cms): Reuters
(https://www.chinadaily.com.cn/a/202508/26/WS68ad08c0a3108622abc9d1f8.html): China Daily