Economic reporter tang yuen of the 21st century
The first-line cities with the best market performance were the first to optimize building-market policy after the spring festival。
On 25 february, the shanghai city housing construction commission, the housing authority, the fiscal authority, the tax administration and the provident fund management centre jointly issued a circular on further optimizing the real estate policy of the city, which deals with seven specific elements, known as “article 7”, for the reduction of the new deal's limited purchase policy, the optimization of the provident fund policy and the improvement of the real estate tax policy。
Article 7 has been in force since 26 february 2026. The analysts noted that the new deal, with its focus on “support for rigid and improved housing needs”, marked a new phase of global optimization in shanghai city regulation。
According to shanghai, market analyst lu wenzei, the new deal has expanded its coverage and has applied a variety of policy adjustment tools to reduce the cost of home purchases while meeting a variety of rigid and improved needs. The shanghai real estate market, in its view, has the dual advantage of housing demand support and national financial asset allocation. The policy is continually being optimized and more people living in shanghai who are working on a permanent basis are gradually being included in the rational purchase route。
Significant reduction in the purchase threshold
The limited purchase adjustment forms the gradient purchase support system. The social security or tax period for non-residents to purchase housing in the outer ring is reduced from three years old to one year continuous; for non-residents who have completed three years of continuous payment of social security or a tax, an additional housing unit may be purchased in the outer ring, i. E. A limited number of purchases within the outer ring to two. At the same time, non-residents with a shanghai city residence permit who have reached the age of five years can limit the purchase of two housing units throughout the city without providing social security or a tax certificate
An analysis by the co-director of the institute of constabulary, song hongsang, indicates that the number of non-residents buying housing in the outer ring has been reduced from three years to one year, with a rough estimate that the number of people with a potential to buy housing will increase by at least 90,000, which is a group of people in need and has a positive impact on driving the inner ring city。
A non-citizen who has paid social security or a tax for more than three years has been granted an additional permit, which has a direct impact on improving demand release. He indicated that the demand for the two suites had also increased with the increase in the number of children in families, as evidenced by the behaviour of non-residents in the last two years. At the same time, the quality of residence and supporting requirements of the middle-aged population over 40 years of age are rising and there is greater potential for improving demand, and the new deal has also had a significant impact on stimulating better demand release from the outside world。
Looking back at the evolution of the policy, the first time in 2011 in shanghai was the introduction of a limited-purchase policy, whereby non-resident families had to pay up to one year of social security in a cumulative period of two years; the addition to five consecutive years of social security in 2016 and non-recoverable; the pilot liberalization of the new port-au-prince area in 2019, which opened the way for subregional adjustment; and the implementation of the “3-to-1” policy outside the outer ring in september 2024, which further extended the one-year social-security threshold to the outer ring, with the liberalization of multiple house-purchase restrictions and continued expansion of policy easing。
The analysts noted that the adjustment, which continued the relaxing logic of “sub-regional, sub-population” since 2019, evolved from the strictest standard of “five-year social security + married” in 2016 to the current “one-year social security ready-to-buy” cycle, completing the full cycle of full-scale tightening to a level of precision
Optimization of the provident fund lending policy is an important underpinning of improved demand. The new deal flexible application of the provident fund instrument is intended to reduce the cost of home purchase by significantly increasing the maximum amount of initial housing equity loans from $1. 6 million to $2. 4 million, an increase of 50 per cent. At the same time, the policy of 20 per cent rise in households with many children and 15 per cent rise in green buildings has resulted in a maximum of rmb 3. 24 million in loans to households and a new high in the shanghai provident fund. The ceiling of the two housing fund loans has been increased at the same time, further reducing the financial pressure on the improved housing purchase group
In terms of determining the number of loan packages, the new deal has clearly closed the provident fund loans, the shanghai city houseless or only one housing unit, and repurchases can apply for a provident fund loan, breaking the previous “privileged” restrictions. It is worth noting that the scope of the provident fund support for families with many children has been extended from the first to the second, with up to 20 per cent of the loan line, which, when combined with green construction policies, will effectively reduce the cost of replacement for families with many children. Earlier, shanghai had piloted a policy of drawing from the provident fund to pay down payments for house purchases, and the increase would form a “loan-up” support system。
In addition, the new deal explicitly exempts from the personal housing tax new or replacement housing for adult children registered in shanghai who are the sole family home since 1 january 2026. The same applies to adult children who, when they are minors, already own housing together with their parents and (other) grandparents, and who are the sole family home after new or replacement housing has been purchased
According to the tax authorities, following a change in the housing situation of homeowners, tax-free family members who qualify for tax exemption are eligible to re-advertise their tax returns, adjust their taxes from the following month, and refund the additional taxes paid after 1 january 2026. This policy will effectively reduce the replacement costs of households with domiciles and promote market flows of housing stock。
In the view of ligen, the head of the shanghai institute of chainers, this “article 7” is a fine, systematic and balanced measure of excellence. The policy is centred on the untying of the gradient and the adoption of zoning measures, significantly lowering the threshold for new citizens and new home purchases, and simultaneously activates improved replacements, creating a combination of “qualification + funding + cost”. The overall effort is modest and clear, effectively repairing market expectations, accelerating the cycle of second-hand houses with new ones, and maintaining the “house-to-house” bottom line, leading to a reasonable release of demand. It is expected that the market will have a stable and structured restoration window that will benefit from the improvements and that the shanghai real estate market will return to a smooth and healthy orbit more quickly。
♪ little ying chun ♪
Behind shanghai's policy of optimizing the housing market is the market base for the city's continued warming. According to luwense, since november 2025, the shanghai stock exchange has remained active for more than 20,000 units for three months in a row, and the “hot winter” scenario has been formalized. Of these, in january 2026, 20. 3 million second-hand dwellings were closed in shanghai, an increase of 26. 69 per cent over the same period, with an average daily internet signature of more than 500 units, a double-day break of more than 1,000 units per day, and a peri-urban area of over 50 per cent, having just to stabilize in the city
In the past spring holidays, shanghai city was equally bright. In shanghai, data on original properties show that during the nine-day holiday period, 484 square metres of new commercial housing was contracted in shanghai, an increase of 193. 22 per cent over the previous spring holiday (7 days) and a significant increase over the 2023 and 2024 spring holidays。
On the second-hand side, there has been a steady rise in market sentiment, with a number of intermediaries opening their doors at the beginning of the year. According to the broker, clients were showing the rhythm earlier than in previous years, and the market was looking forward to the “young spring”. At the supply end, the total stock of the housing stock continues to shrink, there is a marked decrease in the number of cases where the price “sharps” are dropped, the landlord's bargaining space has been reduced, some hot areas have been closed, and the low gross price has just become shorter
Luwense added that the “hot winter” situation in shanghai city was largely established. This development is supported by a combination of policy support, old adaptation and housing security. In addition to the continued easing of home-buying policies, the rehousing and return tax policy continued until the end of 2027, with a strong one-quarter lpr downward revision expected to provide liquidity support to the market. At the same time, improvements in shanghai have continued, with the pilot acquisition of second-hand housing in the pudong, xuxie and jian an districts for guaranteed rental housing, optimizing housing supply structures and stabilizing market transactions
According to the song redguard analysis, the new deal is beneficial not only for the new house market but also for the second-hand house market. The shanghai market is now entering the stock market, with a ratio of 1 to 5 for new and second-hand homes, and an increase in the activity of second-hand businesses, both of which have a positive impact on increasing second-hand market connectivity, promoting the exchange of old and new, and contributing to the stabilization of the market as a whole。
Luwense further noted that as the purchase threshold was lowered, the cost of credit fell and the tax and fee reduction policy fell, the depressed demand for the purchase of the house would be gradually released. The number of second-hand rooms in shanghai has now declined for nine months in a row, with the deactivation cycle reduced to about four months, resonance between supply-side contractions and demand-side releases, and a solid foundation for a steady decline in house prices. The future market will be characterized by a “terminator-first recovery and structural price segmentation”, with demand for fresh housing sources and high-quality assets in core regions expected to become the backbone of the recovery
It is expected that the new deal's landing will further consolidate the recovery momentum in shanghai city and that the certainty of the march-april “yang chun” movement is increasing. The shanghai-shanghai market is at a critical juncture from a “de-foam” to a “stable bottom”, and the policy mix will continue to play a steady market, steady expectations and confidence role in the smooth and healthy development of the real estate market。
According to data from the national statistical office, in january 2026, the decline in the price of residential sales in 70 large and medium-sized cities was generally narrow and the market for second-hand houses showed signs of halting the decline. Among them, the price of second-hand dwellings in the first-line cities declined by 0. 4 percentage points, while the price of second-hand dwellings in shanghai fell by 0. 4 per cent, a reduction that was narrower than last month, with a strong market base。
As lu wen sei has said, the policy is moving forward in an orderly and steady manner, and it is hoped that the trend towards better markets will be further consolidated and that the market will help to accelerate smooth and healthy development. The stability of the shanghai-standing city, which is an important windbeam for the first-line cities, will also inject more confidence into the national market。
