Shanghai has unveiled a new package of real estate policies, significantly lowering the threshold for non-locals to buy homes and hiking the housing provident fund loan cap to stimulate the market.

Under the new rules released today, non-Shanghai residents now need to provide proof of social security or personal income tax payments for only one year to purchase a home anywhere in the city, including within the Outer Ring Road areas. Previously, a three-year record was required for purchases within the Outer Ring Road.

Additionally, non-locals who have paid social security or taxes for three years or more are now allowed to buy a second home within the Outer Ring Road. Those holding a Shanghai Residence Permit for five years or more can buy one home even without social security or tax records.

The city also announced a massive boost to the Housing Provident Fund (CPF) loan limits. The maximum loan amount for a first home has been raised from 1.6 million yuan (US$232,800) to 2.4 million yuan for families, a 50 percent increase. For families meeting specific conditions, the cap can reach as high as 3.24 million yuan.

In a significant policy shift, the "recognize home, not loan" principle now applies to CPF loans. Families with no home or only one home with the mortgage paid off can apply for a CPF loan again, regardless of their previous loan history.

Multi-child families buying a second home will see their loan limit increased by 20 percent on top of the city's maximum.

Furthermore, the policy adjusts property tax rules. Starting January 1, 2026, adult children of Shanghai registered families will be exempt from property tax when purchasing their first and only home.

Source: SHINE