In order to better meet the needs of the population for solid and improved housing and to promote the smooth and healthy development of the real estate market, on 25 february, five departments, namely, the municipal housing and urban construction board, the municipal housing authority, the municipal finance board, the municipal tax board and the municipal provident fund management centre, jointly issued a circular on further optimizing the real estate policy of the city (hereinafter referred to as " the circular " ), effective 26 february 2026。
I. Further reduction of resources reduction policies
The circular clearly adjusts the policy of limiting the purchase of housing by providing housing security of tenure, promoting job balance and focusing on the reasonable housing needs of the population。
The first is to reduce the number of years of social security or taxation required for non-residents to purchase housing in the outer ring. The number of years of social insurance or personal income tax required for the purchase of housing in the outer ring for families or single adults who are not residents of the municipality has been adjusted to one year or more prior to the date of purchase。
The second is that non-residents who meet the conditions may purchase an additional housing unit in the outer ring. For non-resident families or adult single persons who have paid social insurance or personal income tax in their municipality for three years or more, an additional housing unit may be purchased in the outer ring on the basis of the implementation of the existing limited housing purchase policy。
Thirdly, eligible groups with shanghai city residence permits may purchase housing in their municipality. For non-resident families or adult single persons with a shanghai city residence permit who have reached the age of five years or more, there is no requirement to provide a certificate of social security or a tax for the purchase of one dwelling in the municipality。
In accordance with the above-mentioned provisions, families of non-residents or single adults who have completed one year or more of continuous social insurance or personal income tax in their municipality prior to the date of purchase of the home, purchase an unlimited number of housing units outside the outer ring, limit the purchase of one housing unit within the outer ring, and limit the purchase of two housing units within the outer ring after three years or more of continuous social insurance or personal income tax. Up to five years and more with a shanghai city residence permit, the purchase of one housing unit is limited to the city as a whole。
With regard to the operations related to the limited-purchase policy, specific advice can be obtained from the real estate trades service “962269”。
Ii. Optimizing the housing provident fund lending policy
The circular provides for the optimization of the policy of the provident fund, which supports housing consumption and meets the housing security needs of depositors at different stages。
The first is a modest increase in the ceiling of the housing provident fund. The maximum amount of the provident fund loan for the purchase of the first housing unit for the families of the depositors was raised from 1. 6 million yuan to 2. 4 million yuan, and the maximum amount of the loan for the purchase of green buildings was increased to 3. 24 million yuan (up 35 per cent). The maximum amount of credit for the purchase of the second housing unit was increased accordingly。
The second is to optimize the number of loan packages. For families of municipal depositors who have already used the provident fund loan, they may apply for the provident fund loan if they have no or only one housing unit in the municipality and have now settled the loan。
Thirdly, support for the purchase of housing for families with many children has been expanded. The application of the provident fund loan support policy extends from the purchase of the first home to the purchase of the second. In the case of the purchase of a second home for families with many children, the maximum amount of the loan rises by 20 per cent from the maximum amount of the municipal loan。
With regard to the operation of the housing provident fund loan policy, specific advice can be obtained from the shanghai housing provident fund network or the housing provident fund hotline “12329”。
Iii. Improved personal housing property tax policy
The circular provides for a temporary exemption from the individual housing property tax on the purchase of housing for children of adult families who have reached the age of majority in the home of a resident of the municipality as from 1 january 2026. If, at the time of the age of majority (or prior to the piloting of the individual housing tax), the person who bought the house owned jointly with his or her parents and grandparents, after the new or replaced home in the municipality, the dwelling remains the sole home of an adult family (other than the above-mentioned joint home)。
If the family home situation of the purchaser changes, the above-mentioned conditions are met, the taxing information on the individual's housing property may be renewed with the tax office of the taxable home, the tax will be adjusted as from the day after the re-determination of the tax office and the tax will be refunded for an additional period after 1 january 2026。
With regard to improving the operation of the individual housing tax policy, the tax advice hotline “12366” can be called。
