Shanghai releases the "Shanghai Seven Rules" for the real estate market

SnapshotLaborer · 2026-02-25T05:16:17+00:00

To meet residents' housing needs, five departments jointly issued a "Notice," adjusting real estate policies starting in 2026. The main measures include reducing housing purchase restrictions, optimizing housing fund loans, and improving property tax policies, aiming to promote healthy market development.

SnapshotLaborer

2026-02-25 05:16:17

Abstract generation in progress

To better meet residents’ rigid and improving housing needs, and promote the steady and healthy development of the real estate market, on February 25, the Municipal Housing and Urban-Rural Development Management Committee, Municipal Housing Management Bureau, Municipal Finance Bureau, Municipal Taxation Bureau, and Municipal Housing Provident Fund Management Center jointly issued the “Notice on Further Optimizing and Adjusting the City’s Real Estate Policies” (hereinafter referred to as the “Notice”), which will take effect from February 26, 2026.

1. Further Reduce Housing Purchase Restrictions

To serve livable and comfortable housing, promote balanced employment and residence, and focus on meeting residents’ reasonable housing needs, the “Notice” clearly states further reductions in housing purchase restrictions.

Shorten the required social insurance or individual income tax payment years for non-Shanghai residents to buy housing inside the Outer Ring Road. For non-local households or adult singles purchasing housing inside the Outer Ring, the required continuous payment period before the purchase date is adjusted to at least 1 year.
Eligible non-Shanghai residents can purchase an additional housing unit inside the Outer Ring. Non-local households or adult singles who have paid social insurance or individual income tax in the city for 3 years or more can buy one more unit inside the Outer Ring, based on existing restrictions.
Eligible holders of the “Shanghai Residence Permit” can purchase housing in the city. Non-Shanghai residents holding the permit for 5 years or more can buy one housing unit in the city without providing proof of social insurance or income tax payments.

According to these regulations, non-Shanghai resident households or adult singles who have paid social insurance or individual income tax continuously for at least 1 year before the purchase date can buy unlimited units outside the Outer Ring, but are limited to 1 unit inside the Outer Ring; those who have paid for 3 years or more can buy up to 2 units inside the Outer Ring. Holders of the “Shanghai Residence Permit” for 5 years or more are limited to 1 unit citywide.

For inquiries related to housing purchase restrictions, please call the real estate transaction industry hotline “962269.”

2. Optimize Housing Provident Fund Loan Policies

Leverage the support role of the Provident Fund in housing consumption to meet residents’ livable and comfortable housing needs at different stages. The “Notice” stipulates policy improvements.

Appropriately increase the maximum housing provident fund loan amount. The maximum loan for first-time homebuyers will increase from 1.6 million yuan to 2.4 million yuan. With additional policies for families with multiple children and green building purchases (up to 35% increase), the maximum loan amount for city residents can reach 3.24 million yuan. The maximum loan amount for second homes will also be increased accordingly.
Optimize the recognition of the number of loans. For city residents who have used provident fund loans before and currently own no housing or only one housing unit, and have fully repaid previous loans, they can apply for a new loan when purchasing another property in the city.
Expand support for multi-child families purchasing homes. The support policy extends from first-time home purchases to second homes. For multi-child families buying a second home, the maximum loan amount can be increased by 20% over the city’s maximum loan limit.

For inquiries about housing provident fund loan policies, please visit the Shanghai Housing Provident Fund official website or call the hotline “12329.”

3. Improve Personal Housing Property Tax Policies

To support residents’ replacement and improvement needs, the “Notice” states that starting January 1, 2026, for families with adult children who are city residents and whose only property is their adult child’s housing, the personal housing property tax will be temporarily exempted. Specifically, if the property was jointly owned with parents or (external) grandparents before the minor age (or before the city’s personal housing property tax pilot), and after purchasing or replacing housing in the city, the property remains the only housing for the adult child’s family, it will be temporarily exempt from personal housing property tax.

If the family’s housing situation changes and meets the above conditions, they can re-declare and have their personal housing property tax assessed at the tax authority where the property is located. Tax payments made after January 1, 2026, that exceed the amount due will be refunded.

For inquiries about personal housing property tax policies, please call the tax consultation hotline “12366.”

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