Shanghai municipal officials announced on Thursday that several housing‑related policies will be relaxed starting Friday in an effort to stimulate demand for homes within the city.

Mortgage down‑payment lowered

For buyers of second homes located outside the city’s outer ring expressway, the required down‑payment on commercial mortgages will be reduced from the current 20% to a floor of 15%. The change is intended to make it easier for residents to finance additional properties.

Temporary subsidies introduced

The city will also provide temporary subsidies of up to 80,000 yuan (about $12,000) to owners who sell a second‑hand home after purchasing a new home outside the expressway. The subsidy program is designed to encourage turnover in the housing market.

Context and goals

Shanghai’s property market has faced slowing sales and price pressures in recent months. By adjusting mortgage requirements and offering financial incentives, the municipal government hopes to shore up demand and stabilize the market. The measures are part of a broader set of policy adjustments announced by the city’s housing authorities.

These steps follow similar policy easing in other Chinese cities, reflecting a national trend of local governments seeking to support the real‑estate sector amid broader economic concerns.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.