Shanghai has relaxed homebuying restrictions and increased loan limits, allowing more non-native residents and freelancers to enter the property market. 

Under the new policy, announced Wednesday, people who have held a Shanghai residence permit — given to Chinese residents without a Shanghai hukou and necessary for accessing certain public services — for five years or more can now purchase a home anywhere in the city without providing proof of social insurance or tax payments.

Residents not originally from Shanghai are now required to have paid city social insurance or taxes for one year — down from three — to purchase a home within the outer ring roads. Those who have contributed for three years or more may now purchase two homes in the same area.

Previously, eligibility to purchase property in Shanghai largely depended on the length of a buyer’s social insurance or tax contributions. The revised rules now offer greater flexibility for new residents and workers without formal employment benefits, such as freelancers and rideshare drivers.

The maximum provident fund loan for families purchasing their first home has been raised from 1.6 million yuan ($234,000) to 2.4 million yuan. The fund is a mandatory savings program, comprising monthly contributions by both employers and employees that provides subsidized housing loans and rental support.

Families that previously took out a provident fund loan may now apply for another if they own no more than one home in the city and have fully repaid their first loan. The policy also increases the maximum loan for multi-child families purchasing a second home by 20%.

Chen Shuang, a freelance designer who has lived in Shanghai for seven years, visited real estate agencies on the first day the policy took effect to explore buying a home. “I never had social insurance, so I was never eligible to buy an apartment here,” she told Sixth Tone.

A real estate agent surnamed Liu in Xuhui District said the new policy has supercharged housing supply, with more homeowners seeking advice about listing their properties. “Some plan to raise asking prices, while others are taking the opportunity to sell quickly and upgrade,” he said.

Liu works in high-demand neighborhoods near subway stations and schools. “Many people here already pay high rents,” he said. “I think the new policy could encourage some of them to buy.” 

Editor: Marianne Gunnarsson.

(Header image: VCG)