Local residents could now own an unlimited number of flats outside the city’s outer ring road, an area where two-thirds of Shanghai’s housing is located, municipality authorities said on Monday. Previously, families were restricted to a maximum of two housing units in Shanghai.
The mortgage rate for buyers of a second home will be reduced to an annualised 3.05 per cent, down from 3.35 per cent, aligning it with the rate for first-home purchasers.
The policy adjustment aims to address residents’ pent-up housing needs and improve living conditions, while promoting stable and healthy growth in the local real estate market, according to a statement from the Shanghai government.
Shanghai’s market-boosting measures come after new home prices across 70 mainland cities decreased 3.4 per cent last month from a year earlier, according to the National Bureau of Statistics. Home prices nationwide have been falling since April 2022.
In the pre-owned home market, prices have been falling for more than two years, with July seeing a 5.9 per cent year-on-year drop, following a 6.1 per cent decline in June.
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