Shanghai announced on Monday that it will take a series of measures to optimize the local real estate market and promote stable and sound development, including relaxing certain restrictions on home purchases and reducing financial requirements. Experts said it will offer a significant boost for the housing market.
In a notice, four departments of the Shanghai Municipal government said that they will further optimize home purchase policies, support the demands of families with multiple children, and adjust mortgage policies. In total, the notice contained nine new policy measures, which will take effect on Tuesday.
Notably, the down payment ratio for first-time home buyers has been cut to 20% from the previous 30%, and the ratio for those who buy second homes has been cut to 35% from 50%, according to the notice.
Also, the minimum five-year mortgage rate for first-time home purchases has been lowered to 3.5%, while the rate for second home purchases has been reduced to 3.9% from 4.5%.
Moreover, the city will provide direct financial support for families facing difficult housing situations. Qualifying families will be able to apply for subsidies of up to 30,000 yuan depending on the floor space of the apartments.
