Shanghai home sales jump after "Shanghai Seven" policy easing

by WANG Tingting

Shanghai's property market has shown a swift rebound in the first week after the city rolled out a new set of housing support measures, with both new-home showrooms and second-hand housing transactions seeing a sharp increase in activity.

On February 25, five Shanghai government departments jointly issued a notice introducing seven measures to further adjust housing policies — widely referred to as the "Shanghai Seven." The policy package eases home purchase restrictions, expands housing provident fund support and adjusts property tax arrangements.

One of the most significant changes shortens the social security contribution requirement for non-local buyers purchasing homes within the outer ring road from three years to one, expanding eligibility for many newcomers to the city and improving access for upgrade buyers.

Interviews conducted by Jiemian News with developers, brokers and industry analysts show the market reacting quickly. Second-hand housing transactions briefly exceeded 1,000 units in a single day, visits to new-home projects doubled in some cases, and the decision-making cycle for buyers shortened significantly.

Developers have also begun adjusting launch plans to capture demand, while buyers from other cities in the Yangtze River Delta are increasingly entering the market. Demand ranges from older small apartments for first-time buyers to luxury homes priced above 10 million yuan.

Second-hand transactions rebound

The policy impact has been particularly visible in the secondary housing market.

According to ZHANG Wenjing, Shanghai data director at the China Index Academy, the city recorded an average of 685 second-hand home transactions per day during the first week after the policy was introduced (February 25–March 3). During the first weekend following the announcement, daily transactions peaked at 1,013 units.

"Excluding the distortions caused by the Lunar New Year holiday, the figure not only reverses the seasonal slowdown but also exceeds the pre-policy daily average of 677 transactions," Zhang told Jiemian News.

Industry participants say the policy has also helped unblock the "sell-old, buy-new" chain that often constrains housing upgrades.

A representative from Pacific Rehouse told Jiemian News that the policy combines relaxed purchase eligibility, provident fund support and tax adjustments. Shorter social security requirements and the ability to purchase homes after five years of residence permit status have reopened the market for many previously restricted buyers.

Data from the Shanghai Lianjia Research Institute reflects a similar surge in interest. On the day the policy was announced, daily active users on the Beike and Lianjia property apps rose 36.8% from the previous day. Second-hand home viewing appointments jumped 122%, while viewings for new homes increased 106%.

Compared with the average weekday level in January, online inquiries for second-hand homes rose 81% in the two days following the policy announcement, while inquiries for new homes surged 156%, the institute said.

New-home projects see strong traffic

New-home projects have also seen a rapid increase in visits.

Poly Developments reported strong early sales at several Shanghai projects during the first week after the policy change. Poly Shibo Tianyue drew more than 300 visitor groups and about 250 million yuan in sales, while another project logged 300 visitor groups and 10 deals. A new development in Xinjiangwan City also drew more than 200 visitor groups.

Sales galary at a China Resources Land project.

China Resources Land said its Shanghai operations recorded more than 320 million yuan in sales on the first working day after the policy announcement. At one project inside the inner ring road, visitor numbers rose more than 50% and sales approached 200 million yuan.

Some projects reported a noticeable increase in interest from buyers outside Shanghai, particularly from cities across the Yangtze River Delta such as Nantong, Yancheng, Suzhou, Yiwu, Ningbo and Wenzhou.

Developers have begun adjusting launch strategies to capitalize on the policy window. Several projects are planning additional unit releases in March, citing strong visitor traffic and faster-than-expected sales.

Diverse buyers re-enter the market

The policy changes appear to be activating demand across multiple buyer groups, including first-time buyers, upgrade purchasers and high-net-worth investors.

Industry sources said expanded housing provident fund loan limits have lowered barriers for first-time buyers. The maximum loan amount for first homes has been raised to 2.4 million yuan, and can reach up to 3.24 million yuan for families with multiple children purchasing green buildings.

Sales galary at a Jinmao project.
Photo by Wang Tingting

At the higher end of the market, confidence appears to be improving as well. A sales manager at a Poly luxury project said one buyer recently purchased a townhouse of about 285 square meters priced at roughly 40–50 million yuan as part of a long-term asset allocation strategy.

Cross-regional purchases are also increasing, with some parents from cities including Hangzhou, Ningbo, Suzhou and Wuxi buying homes in Shanghai for children working in the city.

"Golden March and silver April" expected

Industry observers believe the policy could help drive a stronger property market in the coming months.

Zhang said the new-home market has lagged slightly because February supply was limited, but activity is expected to pick up as new projects enter the market in March.

"With housing supply recovering after the holiday period, transaction momentum should strengthen further," she said, adding that the traditional "Golden March and Silver April" sales season may see a concentrated release of demand.

Market participants say the policy's most important effect may be restoring confidence among both buyers and sellers.

"Before the policy change, many buyers preferred to wait and see," said a sales manager at one project. "Now more clients are actively arranging viewings and asking about details. That shift in sentiment is the biggest change we're seeing."