Shanghai Lowers Downpayment Ratios to 20% and 30%, Eases Home Purchase Rules

May 27, 2024, 10:52 AM

Shanghai has announced a series of measures to support its property market, becoming the first major Chinese city to implement such extensive easing policies. The financial hub has lowered the minimum downpayment ratio for first-time homebuyers to 20% and for second-time buyers to 30%. Additionally, mortgage rates have been reduced to LPR minus 45 BPS, and restrictions on home purchases for non-local residents and divorced couples have been eased. These measures are part of a broader national effort by China to stabilize its real estate market, which has been facing significant challenges. Since May 17, 71 major cities have implemented property promotion policies, including trade-in deals for old homes. The central government has also encouraged state-owned enterprises to buy unsold properties and convert them into affordable housing. Li Yunze, head of the National Financial Regulatory Administration, has been actively involved in the inspection and coordination of these efforts.