Shanghai Adjusts and Optimizes Real Estate Market Policies
Analyst: These policies don't seem to move the needle to entice new and repeat buyers into the market. A 30% DP on first purchases and 50% on second purchases defeats the purpose of lowering rates. It shuts out potential buyers in favor of wealthier ones. Buyers are also taking a big risk for a market that's yet to stabilize.
The policy details:
- Shanghai is making adjustments to housing standards and credit policies, effective from December 15, to meet residents' evolving housing demands.
- For the first commercial personal housing, the floor mortgage rate will be set at LPR minus 10 bps, with a minimum down payment ratio of not less than 30%.
- The second commercial personal housing will have a floor mortgage rate at LPR plus 30 bps, and a minimum down payment ratio not lower than 50%.
- In the new Lingang area of the FTZ and six administrative districts (Jiading, Qingpu, Songjiang, Fengxian, Baoshan, Jinshan), a differentiated policy will be implemented.
- For the second commercial personal housing in these areas, the floor mortgage rate will be not less than LPR plus 20 bps, with a minimum down payment ratio of no less than 40%.
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