Shanghai introduced fresh measures on Thursday to revive its sluggish housing market, lowering the minimum down payment for second-home mortgages to 15% from 20% and offering temporary subsidies of up to 80,000 yuan ($11,898) for buyers trading up to newer properties outside the city’s outer ring expressway.
The policy changes, effective from Friday, follow broader efforts by Chinese authorities to stabilize a sector grappling with falling prices and weak consumer confidence. The Shanghai Housing Provident Fund Management Center also signaled adjustments to housing fund policies, though specific details were not disclosed in the announcement.
The down payment reduction applies to second homes purchased beyond the outer ring expressway, a move aimed at encouraging transactions in peripheral districts where demand has softened. The temporary subsidies are contingent on individuals selling second-hand homes after acquiring new properties in the same areas.
The announcement comes as Beijing seeks to address broader economic headwinds, including property sector stress that has weighed on growth. China’s central bank and financial regulators have previously rolled out targeted easing measures, but recent data suggests the impact on market sentiment has been limited.
The exchange rate cited in the notice was 6.7239 yuan per U.S. dollar.
