Shanghai's &#34;Seven Policies&#34; new regulations took effect two days ago, and the market quickly heated up: On February 25, the number of viewings for second-hand houses surged by 122% month-on-month, while the number of viewings for new houses increased by 106%. Online inquiries rose by an average of 81% (for second-hand houses) and 156% (for new houses) compared to January. The new policies focus on loosening purchase restrictions (reducing the social security requirement for non-residents within the outer ring to 1 year), increasing housing fund limits, and expanding the scope of property tax exemptions, effectively activating both rigid and improved demand. Feedback from the front lines indicates that customers' willingness to enter the market has strengthened, hesitant customers are accelerating their decisions, and some homeowners have begun to raise listing prices, showing initial signs of a &#34;small spring&#34; in the market.
The effects of the &#34;Seven Policies&#34; on Shanghai's real estate market have begun to manifest.
On February 25, five departments, including the Shanghai Municipal Housing and Urban-Rural Development Management Committee, the Municipal Housing Management Bureau, the Municipal Finance Bureau, the Municipal Taxation Bureau, and the Municipal Housing Fund Management Center, jointly issued the &#34;Notice on Further Optimizing and Adjusting the City's Real Estate Policies&#34; (hereinafter referred to as the &#34;Seven Policies&#34;), introducing a series of optimization measures such as further loosening purchase restrictions, increasing housing fund loan limits, and temporarily expanding property tax exemptions. The policies took effect on February 26. Just two days after the new regulations were implemented, market activity has significantly rebounded.
&#34;This new policy focuses on lowering the threshold for home purchases, reducing ownership costs, and supporting reasonable housing demand,&#34; said Yan Yuejin, deputy director of the Shanghai E-House Real Estate Research Institute. He pointed out that against the backdrop of an overall positive real estate market in the first two months of this year, such incremental policies will have a positive effect.
In terms of purchase restrictions, the new policy clarifies that the social security or individual income tax requirement for non-resident buyers purchasing housing within the outer ring is reduced from 3 years to 1 year; families or single adults who have paid social security for 3 years can purchase one additional unit within the outer ring; and those holding a residence permit for more than 5 years can buy a house without needing to provide social security. At the same time, housing fund loan limits have been raised, loan limits for green building projects have been increased, and minor adjustments have been made to the property tax exemption criteria, providing comprehensive support for rigid and improved housing needs.
Although the policy has been in effect for a short time, market activity on the front lines has already become apparent. Data from Shanghai Lianjia Research Institute shows that, influenced by the &#34;Seven Policies,&#34; market activity has significantly increased recently, effectively releasing housing demand. According to data from Shanghai Lianjia, on the day the new policy was announced, February 25, the daily active user count on the Beike/Lianjia app increased by 36.8% compared to February 24; the number of viewings for second-hand houses rose by 122%, and the number of viewings for new houses rose by 106%. Compared to the average daily levels in January, the daily active user count on the Beike/Lianjia app on February 25 and 26 increased by 42.8%, with online inquiries for second-hand houses rising by 81% and for new houses by 156%.
Li Gen, head of the Shanghai Lianjia Research Institute, believes that as the number of returnees to Shanghai continues to increase, the viewing volume is expected to maintain a steady upward trend, and the market recovery trend is likely to be further consolidated.
It is worth mentioning that this new policy further expands the purchasing group. Among them, non-resident families or single adults who have held a &#34;Shanghai Residence Permit&#34; for 5 years or more can purchase one unit of housing in Shanghai without needing to provide proof of social security or individual income tax payments
In the past, the purchase restriction policy mainly focused on the years of social security contributions. For some individuals engaged in urban basic services or those whose company headquarters are located elsewhere, they may have been ineligible to purchase a house due to not having paid social security in Shanghai. However, under the new policy, the eligibility to purchase a house can be linked to the duration of residence permits.
Ni Yanpeng, a senior agent from Lianjia in the ChuanSha JiangZhen area of Shanghai, mentioned, &#34;For some individual business families, they haven't paid social security, but they have been living in Shanghai for a long time and have residence permits. After the policy was relaxed, they quickly came out to look at houses, and some clients directly made deposits when they found suitable properties.&#34;
He stated that after the implementation of the new policy, clients' willingness to enter the market has significantly increased, and landlords' attitudes have also stabilized. &#34;Currently, the overall activity in our store, including viewings, listings, and transactions, is warming up, showing clear signs of a small spring. Many hesitant clients are coming to negotiate prices with owners and sign contracts.&#34;
The business supervisor of a store in the Weifang area of Pacific Housing also clearly felt the warmth in the market, &#34;Compared to previous years after the New Year, buyers' enthusiasm is higher. On the first day back to work on the 25th, we closed a deal. The client's exact words were that because the new policy came out, they were originally still hesitating, but once the policy was released, they made a decision.&#34;
At the same time, some buyers' mindsets have also begun to change. Taking a property located in Weifang New Village, Pudong, Shanghai, as an example, according to the agent, the property was negotiated at 1.9 million yuan before the New Year, but after the New Year, the owner raised the asking price to 1.99 million yuan, and their mindset is still changing.
From the perspective of the new housing market, on the night the new policy was announced, a new housing project in the city center launched discounted properties and announced, &#34;The sales office will not close tonight, and we will be open all day,&#34; and some real estate companies have reported that the total transaction amount for Shanghai companies exceeded 170 million yuan within 24 hours of the new policy.
Additionally, sales personnel from Poly Duhui Hexu in Minhang Zhuanqiao reported that after the new policy, the overall number of visitors to the project increased by 30%, and transaction volume increased by 100%. On the first day of the new policy (February 26), the project sold 6 units. &#34;Some clients came out to view houses on the day the new policy was announced, and after negotiating for over an hour, they made a purchase. The policy has accelerated clients' confidence and decision-making.&#34;
From the perspective of the aforementioned sales personnel, this policy appears to be more favorable for those within the outer ring, but looking deeper, it not only allows everyone to &#34;afford&#34; but also encourages everyone to &#34;buy good houses.&#34; The increase in the loan limit for the first home through the provident fund, the floating limit for green buildings, and the temporary expansion of property tax exemptions all point in this direction.
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After the implementation of Shanghai's "Seven Policies," the market quickly heated up. On February 25, the number of viewings for second-hand houses surged by 122% month-on-month, while the number of viewings for new houses increased by 106%. The new policies focus on loosening purchase restrictions, raising housing provident fund limits, and expanding property tax coverage, effectively activating both rigid demand and improvement demand. The policies took effect on February 26, aiming to lower the threshold for home purchases and reduce housing costs. Market activity has significantly increased, and home buying demand has been effectively released

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The "Seven Policies for Shanghai" have shown effective results: the number of viewings by agents has doubled month-on-month, and some buyers made deposits on the same day as the new policy was announced