Shanghai city eases home-buying rules for non-residents

Shanghai city eases home-buying rules for non-residents

Shanghai Eases Home-Buying Restrictions for Non-Residents Amid Property Market Struggles

Shanghai has announced adjustments to its real estate policies, removing purchase limits for eligible non-residents and expanding access to its housing market. Effective immediately, non-local residents who have paid taxes in their home regions for 12 consecutive months are now permitted to purchase property in Shanghai, down from a prior requirement of three years. Additionally, single individuals are now classified as "families" under the revised rules, granting them the same benefits as multi-person households.

The policy changes apply primarily to areas outside the city's outer ring road, where two-thirds of Shanghai's housing stock is located. Previously, families were restricted to a maximum of two homes in the city. Under the new measures, residents — both local and non-resident — can now own an unlimited number of properties in these outer suburbs. The city also reduced mortgage rates for second-home buyers to 3.05% annually, aligning them with rates for first-time buyers.

These adjustments follow a broader trend of easing housing restrictions in China, as authorities seek to stabilize a property sector in prolonged decline. Nationwide new home prices fell 3.4% year-on-year in August 2025, with the pre-owned market experiencing declines exceeding 5.9% in recent months. Shanghai's reforms mirror similar moves in Beijing and Guangzhou, where purchase caps and tax requirements have been relaxed to stimulate demand.

Analysts note that while the measures aim to address pent-up housing demand and improve market stability, their impact may be limited by persistent economic pessimism and stagnant wage growth. Zhu Xinhai, a Shanghai-based real estate sales manager, observed that "prevailing pessimism may still dampen buying interest" despite the policy shifts.

The easing of restrictions also extends to overseas buyers, who can now convert foreign currency into yuan for down payments immediately after signing purchase agreements, streamlining a previously cumbersome process. This reform, expanded nationwide from a pilot in the Guangdong-Hong Kong-Macao region, aims to simplify cross-border property transactions.

Shanghai's actions reflect central and local governments' ongoing efforts to revive a sector contributing roughly 25% to China's GDP. However, experts caution that sustained recovery will require broader fiscal and structural support beyond purchase incentives.